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Latest Guidance on the Tax Treatment of Settlement and Damage Awards

Knowing how to treat taxes in settlements and damage awards can save you time and money when it comes to dealing with tax laws.

This topic will focus in on and explore practical strategies for dealing with the important tax aspects of personal injury, commercial, employment and other lawsuit awards and review the many traps for the unwary. Confusion and litigation abound relative to the taxability of damages for commercial awards; personal injuries or sickness; differentiate for damages for nonphysical injuries such as gender and age discrimination or in harassment cases; punitive damages; interest on deferred awards payouts; tax issues in structured settlements; tax issues differing from state to state and many other clear as mud issues. In some cases lawsuit awards and settlements can be wholly or partially tax-free. In others, they can even be fully taxable. Additionally, personal injury victims can wind up paying income tax on money that goes to their attorneys. Many clients may not understand any of this but is necessary and important that valuation and litigation support consultants as well as attorneys have a clear understanding of these issues to properly advise their clients. This topic will give practitioners the answers to these and other important questions.

88 minutes
Certificate of Completion
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Why Lorman?

Over 34 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.

Agenda

Must Know Tax Basics

  • Overview - Tax 101

Consider the Origin of the Claim to Determine Tax Treatment

When Drafting Your Complaint Use the Irc Claim Checklist to Make Sure You Have Included Every Non-Taxable Claim

  • The Internal Revenue Code Provides Every Practitioner a List of Damages for Claims That Would Not Trigger a Tax Recognition Event

When Drafting a Complaint Consider, If Applicable, Including the Causes of Action That Permit a Plaintiff to Deduct the Recovery of Attorney Fees as an Above-The-Line Deduction

  • Attorney Fee Checklist

Do Not Use a Boiler-Plate List of Claims or Damages in a Complaint or Settlement Agreement

Be Precise in Drafting Your Complaint and Settlement Agreement to Reflect Statutory Exclusions

Make Sure Claims for Tax Excluded Items Are Supported in the Trial Record by Testimony, Evidence and the Payor's Intent

Make Sure the Payor's Intent and Information Returns Are Consistent

Consider Your Client's Best Case and Worst Case Net Proceeds Before Commencing Litigation

Consult With a Tax Professional During Each Stage of a Controversy, Negotiation, Litigation, or Arbitration Process

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Why Lorman?

Over 34 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.

Credits

OnDemand Course

Applications have not yet been submitted for Delaware, Idaho, Kentucky, Ohio, Oklahoma, South Carolina, and Wyoming CLE for this course. However, if you are interested in obtaining CLE for any of the listed states or have any additional credit questions please email us at [email protected] or call us at 866-352-9540.

This course was last revised on August 12, 2019.

Call 1-866-352-9540 for further credit information.

  • CA MCLE 1.5
     
  • Lorman Business Center, LLC. is a State Bar of California approved MCLE sponsor and this course qualifies for 1.5 CLE hours of participatory credit.
     
  • WA CLE 1.5
     
  • This program has been approved by the Washington State Board of Continuing Legal Education for 1.5 hours of A/V credit under the Law & Legal Procedure category.
     

To earn each credit Lorman offers through the OnDemand learning platform, you need to watch 100% of the program. Also, for certain credits you will need to fulfill additional requirements which will be displayed on the "credits" tab when viewing the course.

This program does NOT qualify, nor meet the National Standard for NASBA accreditation.

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Why Lorman?

Over 34 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.

Faculty

Martin H. Abo, CPA, ABV, CVA, CFF

Martin H. Abo, CPA, ABV, CVA, CFF

Abo and Company, LLC

  • Manager and founding member of Abo and Company, LLC Certified Public Accountants
  • Co-managing member of Abo Cipolla Financial Forensics, LLC, an affiliate of the core accounting firm exclusively providing expert witness testimony on financial matters and other litigation support services and business valuations
  • Has comprehensive experience in individual and corporate financial, business and tax planning
  • The majority of his business clients are closely held businesses and professional service firms needing advice and guidance on evaluating the enterprise and establishing/maintaining sound business and financial practices that are also practical
  • Has been providing such services for lawyers and law firms of various sizes and other enterprises covering many industries; clients as well as the banking, insurance, legal and general business communities continue to call upon him to provide unbiased consulting assistance, business valuations and dispute resolution
  • Holds the professional designation of certified valuation analyst from the National Association of Certified Valuation Analysts and has been awarded the designations of ABV, Accredited in Business Valuation, and CFF, Certified in Financial Forensics, by the American Institute of Certified Public Accountants
  • Volunteers time and expertise to many other business and professional organizations including serving as a director of Deborah Hospital Foundation; an active member and served as president of the Estate and Financial Planning Council of Southern New Jersey; is an active member and served as a director of the Chamber of Commerce of Southern New Jersey; serves on the Matrimonial Accounting Interest Group of the NJSCPA
  • Director and treasurer of Exit Planning Exchange-Philadelphia (XPX), whose members include estate planning attorneys, CPAs, investment bankers, wealth management advisors, commercial lenders, executive coaches, M&A attorneys, marketing and management consultants as well as former business owners who now advise fellow business owners on exit planning
  • Can be contacted at 856-222-4723 or [email protected]
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Why Lorman?

Over 34 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.

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Pay once and get a full year of unlimited training in any format, any time!

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Additional benefits include:

  • State Specific Credit Tracker
  • Members Only Newsletter
  • All-Access Pass Course Concierge

* For audio recordings you only pay shipping

Questions? Call 877-296-2169 to speak with a real person.

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Product ID: 406224
Published 2019
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