Taxation of Lawsuits, Awards, and Settlements

Course Description

This course describes the various tax consequences that arise when the taxpayer receives or pays a lawsuit judgment, award, or settlement. Both gross income inclusion rules and tax deduction issues are discussed and illustrated with examples from case law and IRS rulings. The payment of attorney's fees is also covered extensively. After taking this course you should be able to accurately assess the tax ramifications of damages and settlements received or paid by your clients and assist your client and counsel representing your client in structuring lawsuits and settlement agreements.

Learning Objectives

Upon completion of this course you will be able to:

• Identify damage awards and settlements that are taxable
• Recognize which legal expenses are deductible
• Choose appropriate approaches to settling legal disputes to achieve favorable tax consequences
• Describe how to report attorney's fees with respect to legal disputes
• Indentify the tax consequences of divorce, contract, and other types of legal cases

Duration: 100 minutes
Who Should Attend: All tax practitioners advising individual and business clients
Course Level: Basic
Prerequisite: None
Advance Preparation: None
Delivery Method: Self Study - Internet Based (QAS)
IRS CE: UBWMF-T-00218-21-S
CTEC: 6209-CE-0057
NASBA: 116347
Expiration: In accordance with NASBA standards, access to this course will terminate one year from the date of purchase. Incomplete courses will no longer be accessible beyond the one year deadline.

Last Modified: 04/27/2021