Tax
Oct. 8, 2021
IRS tax on legal settlement agreement? Watch your wording.
How legal settlements are taxed often surprises people, including many plaintiffs. Most things are taxed, but there is often flexibility, and what you say matters. Even legal malpractice settlements are usually taxed, and there has been a spate of recent tax cases.
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.
How legal settlements are taxed often surprises people, including many plaintiffs. Most things are taxed, but there is often flexibility, and what you say matters. Even legal malpractice settlements are usually taxed, and there has been a spate of recent tax cases. The latest is Carol Holliday v. Commissioner, T.C. Memo. 2021-69.on the heels of several other recent cases.
In McKenny v. Uni...
For only $95 a month (the price of 2 article purchases)
Receive unlimited article access and full access to our archives,
Daily Appellate Report, award winning columns, and our
Verdicts and Settlements.
Or
$795 for an entire year!
Or access this article for $45
(Purchase provides 7-day access to this article. Printing, posting or downloading is not allowed.)
Already a subscriber?
Sign In