Tax,
Civil Litigation
Jul. 5, 2019
Settlements and taxes: 5 IRS rules to remember
Many plaintiffs settle lawsuits or win judgments, but are later surprised that they have to pay taxes. Even those who know that most payments are taxable may be surprised at how the taxes are computed. Of course, some plaintiffs do not realize how big the tax issues are until tax time the following year, when IRS Forms 1099 arrive in the mail.
Robert W. Wood
Managing Partner
Wood LLP
333 Sacramento St
San Francisco , California 94111-3601
Phone: (415) 834-0113
Fax: (415) 789-4540
Email: wood@WoodLLP.com
Univ of Chicago Law School
Wood is a tax lawyer at Wood LLP, and often advises lawyers and litigants about tax issues.
Many plaintiffs settle lawsuits or win judgments, but are later surprised that they have to pay taxes. Even those who know that most payments are taxable may be surprised at how the taxes are computed. Of course, some plaintiffs do not realize how big the tax issues are until tax time the following year, when IRS Forms 1099 arrive in the mail.
At that point, many plaintiffs suddenly worry about their tax returns and how to minimize ...
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