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U.S. Tax Court Decision Shows Importance of Carefully Drafting Settlement Agreements

In Sharp v. Commissioner, the United States Tax Court once again demonstrated the importance of carefully crafting settlement agreements and reaffirmed that emotional distress damages are taxable income to the recipient....more

IRS Provides FICA Reporting, Withholding, and Other Guidance Regarding Married Same-Sex Couples

Until the United States Supreme Court decision in United States v. Windsor, 570 U.S. ___ (2013), the Defense of Marriage Act (DOMA) required employers providing subsidized benefits to same-sex spouses and domestic...more

IRS Reaffirms Advice on the Proper Employment Tax Treatment of Settlements

On August 30, 2013, the IRS reiterated its longstanding positions on the proper tax treatment of litigation settlements with current or former employees. In its Chief Counsel Advice (CCA) Memorandum 20133501F, the IRS...more

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