Description:

In the course of legal actions, payments may be made pursuant to a final disposition of a court case or a mutually agreed-upon settlement.  This course will cover the tax implications for payments made for personal injury, emotional distress, lost wages, punitive awards, pre- and post-judgement interest, contract claims, among other damages.

Learning Objectives:

After attending the presentation you will be able to...

• Obtain a working knowledge of the IRC, Treasury Regulations and case law governing the taxation of litigation payments.
• Be able to differentiate between the different types of damage payments and whether they are taxable to the recipient or deductible by the payor.
• Be able to draft pleadings and agreements to order to allocate the payments among the different categories of damages.
• Have an ability to advise clients on the most advantageous manner of categorizing settlement payments.

Program Content:

The major topics that will be covered in this class include:

• Types of damages or remedies that can be awarded or agreed upon pursuant to litigation.
• Review of the Internal Revenue Code and regulations governing the taxation of various types of litigation payments.
• Suggestions for drafting pleadings or settlement agreements.

Who should attend: This course is suitable for Corporate tax and finance executives, directors, managers and staff, CPAs, CAs Enrolled Agents, accountants, attorneys and business/financial advisors who work with and advise businesses that have tax implications.  

Developed By: Allison M. McLeod, LL.M., CPA. A PLLC

Instructor: Allison M. McLeod

CPE Credit: 2.0

Field of Study: Taxes (2 CPE)

Prerequisites: None

Advanced Preparation: None

Format: QAS Self Study