News & Events

News & Events


Plaintiffs might receive emotional distress damages tax-free after 2010

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Since 1996, emotional distress damages, unlike damages paid on account of physical injuries and physical sickness, have been generally taxable. Plaintiff attorneys and structured settlement industry members lobbied Treasury at a February 23, 2010, Treasury hearing to allow some damages to be received tax-free even without directly satisfying the “physical” requirement. This article discusses the hearing, and how a recommendation by the National Taxpayer Advocate may make it possible for legislation to take us back to pre-1996 days.

Read the full article (PDF).

This article first appeared in North Carolina Lawyers Weekly.