Settlement, Damages, IRS

NCAA’s $2.8 Billion Athlete Revenue Settlement Receives Final Approval

Shook, Hardy & Bacon L.L.P. on 6/9/2025

Not only does Judge Claudia Wilken’s final approval of the In re: College Athlete NIL Litigation settlement provide $2.576 billion in damages for settlement class members, it changes the rules of the game for current and...more

Investigations Newsletter: Connecticut State Court Finds Defunct Pharmacy Liable for $39.2 Million in Damages and Penalties

ArentFox Schiff on 11/4/2024

Connecticut State Court Finds Defunct Pharmacy Liable for $39.2 Million in Damages and Penalties - A Connecticut Superior Court judge found Assured Rx, LLC, a Florida-based pharmacy, liable for violating the Connecticut...more

Are Lawsuit or Settlement Damages Taxable?

Freeman Law on 12/17/2020

Taxpayers who suffer from physical injuries or physical sickness can generally take advantage of a special provision in the Code that makes such damages non-taxable. See I.R.C. § 104(a)(2). Generally, this can be an easy...more

Best in Law: Tax Ruling Confirms Protocol on Job-Related Judgments

Best Best & Krieger LLP on 10/7/2015

The California Court of Appeal recently confirmed that employment-related settlements or judgments are wages from which employers must withhold payroll taxes. In Cifuentes v. Costco Wholesale Corp., Cifuentes...more

Trial Attorney Tax Summary for Taxation of Settlements and Damages – Part 6: Damages for Post Traumatic Stress Disorder (PTSD)

Gerald Nowotny - Law Office of Gerald R.... on 3/15/2013

Overview - This article is designed to outline the tax treatment of post-traumatic stress disorder (PTSD) damages for plaintiffs. PTSD has become a household illness particularly among our soldiers returning from Iraq...more

IRS Reporting Requirements for Class Action Settlement Payments and Court Awarded Damages

BakerHostetler on 2/20/2013

When finalizing class action settlements, or paying damage awards after a class action judgment, it is important to be mindful of the taxation of these payments and the related IRS information reporting requirements triggered...more

Trial Attorney Tax Summary for Taxation of Settlements and Damages – Part 1: The Basics

Gerald Nowotny - Law Office of Gerald R.... on 1/9/2013

Overview - Legal settlements in the U.S. easily exceed one trillion dollars on an annual basis. The tax consequences of settlements and damages should be reasonably well known and settled. . However, that is not the...more

Settlement › Damages › Internal Revenue Service