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Tax

Jan. 11, 2023

IRS targets structured fee tax deferrals for plaintiff lawyers

The IRS does not have the power to outvote the Tax Court or Eleventh Circuit, but it has the power to audit.

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.

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It would be difficult to overstate the surprise from insurance companies, structured settlement providers, settlement brokers, and plaintiff lawyers from the release in December 2022 of IRS General Legal Advice Memorandum, AM 2022-007, known in tax parlance as a GLAM. The only known attack on structured legal fees came in 1994, when the IRS was rebuffed by the Tax Court and 11th Circuit in the seminal case of Childs v. Commissioner 103 T.C. 634 (1994), aff'd w...

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