Tax Advice for Settlements & Judgments
Our tax attorneys are experienced with the income tax issues arising from litigation payments and recoveries from a broad range of cases, including personal injury, wrongful termination, disability insurance claims, property condemnation, contract disputes, patent infringement, trust and estate litigation, whistleblower qui tam suits, and other matters. We regularly are called upon to draft tax-sensitive provisions in settlement agreements and advise return preparers on the tax reporting of settlement payments. We defend our clients before the IRS and in the courts.
Both before and after settlement or judgment, we can help maximize the value of deductions or payments on an after-tax basis. We have substantial experience with the formation and administration of qualified settlement funds, also known as section 468B funds, and their various uses in resolving disputes and facilitating structured settlements. We are well versed in the intricacies of structured settlements, including structured attorneys’ fees. We also advise clients with respect to the tax issues arising from litigation financing and the sale, donation, or other transfer of pending litigation claims.