Tax Aspects to Lawsuits, Awards, and Settlements (Completed)

Date: Monday, September 25, 2023
Instructor: Susan Harper
Begin Time:  11:00am Pacific Time
12:00pm Mountain Time
1:00pm Central Time
2:00pm Eastern Time
CPE Credit:  2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC

Join Susan Harper, Certified Fraud Examiner, and former IRS Internal Revenue Agent for more than 30 years. This webinar will explain the taxability of lawsuits, awards, and settlements. Explore compensatory vs. punitive damages, as well as physical injury vs. physical sickness cases. Discuss emotional distress cases involving discrimination, fraud, and more. With 20 years instructing CPE courses, Susan will deliver an entertaining and informative discussion sharing court cases with you to better understand the tax law to protect your clients.

Topics Covered

  • Terminology
  • Tax Treatment of Awards & Settlements
  • Payroll & Self-Employment Considerations
  • Attorney Fees
  • Accrued Interest on Judgments
  • IRS Examination Issues
  • Information Reporting Requirements (1099s)
  • Litigated Case Discussions

Learning Objectives

  • To determine when a lawsuit, award, or settlement is taxable
  • To understand the difference between compensatory and punitive damages and their proper allocation
  • To understand the difference in a case involving physical injury vs. physical sickness
  • To address non-physical injury cases, such as emotional distress
  • To properly report taxable amounts received (not net of legal fees)
  • To determine proper deductibility of legal fees
  • To anticipate examination issues by IRS auditors
  • To understand the potential consequences and associated penalties imposed by the IRS for failure to report correctly
  • To discuss various court cases


Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites

Advance Preparation

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