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Internal Revenue Service Emotional Distress Damages

The United States Internal Revenue Service is a bureau of the United States Department of the Treasury. The IRS is charged with collecting revenue and enforcing the Internal Revenue Code.  
JAMS

Are Emotional Distress Damages in FEHA Settlements Taxable?

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In California FEHA settlements, plaintiffs often recover damages for both emotional distress and lost wages—but how are those payments taxed? Employers often compel an allocation in damages between wages (economic loss) and...more

Freeman Law

Are Settlement Payments for Emotional Distress Taxable?

Freeman Law on

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

Freeman Law

The IRS’ Lawsuits, Awards, and Settlements Audit Techniques Guide

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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

Littler

Tax Court Reiterates the Proper Tax Treatment of “Physical Injuries” in Employment Cases

Littler on

In Stassi v. Commissioner, the United States Tax Court found that a settlement was not excludable from income as a personal physical injury because the taxpayer failed to demonstrate that her shingles was caused by her...more

Holland & Knight LLP

Religious Institutions Update: June 2019 - Lex Est Sanctio Sancta

Holland & Knight LLP on

Key Cases - Covert Surveillance Due to Religious Identity is Actionable - Government surveillance of individuals due to their religious identity is actionable under federal law. In Fazaga v. Federal Bureau of...more

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