The proper federal tax treatment for any given settlement payment is something of an enigma. Generally, federal courts (and thus, the IRS) respect the terms of a settlement agreement if the terms are clear and the parties...more
Some time ago, the IRS issued an Audit Techniques Guide on the taxation of lawsuits, awards, and settlements. As many tax practitioners can attest, there are a multitude of tax issues involving any one of these issues. In...more
5/21/2021
/ Attorney's Fees ,
Compensatory Damages ,
Emotional Distress Damages ,
Fair Labor Standards Act (FLSA) ,
Federal Taxes ,
Income Taxes ,
IRS ,
Legal Fees ,
Punitive Damages ,
Settlement Agreements ,
Tax Audits