Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2024 to receive credits
In the course of legal actions, payments may be made pursuant to a final disposition of a court case or a mutually agreed-upon settlement. This course will cover the tax implications for payments made for personal injury, emotional distress, lost wages, punitive awards, pre- and post-judgement interest, contract claims, among other damages.
Publication Date: February 2022
Designed For
Corporate tax and finance executives, directors, managers and staff, CPAs, CAs Enrolled Agents, accountants, attorneys and business/financial advisors who work with and advise businesses that have tax implications. All in-house and public practice tax professionals will benefit from this timely and insightful seminar.
Topics Covered
- Litigation Process
- Sec. 104(a) Generally
- Wages
- Attorneys Fees
- Other Category of Damages
- Tax Implications to Payor
- Drafting Tips
- IRS Procedure
- Additional Case Law
Learning Objectives
- Recognize how to obtain a working knowledge of the IRC, Treasury Regulations and case law governing the taxation of litigation payments
- Differentiate between types of damage payments and whether they are taxable to the recipient or deductible by the payor
- Recognize how to draft pleadings and agreements to order to allocate the payments among the different categories of damages
- Recognize how to advise clients on the most advantageous manner of categorizing settlement payments
- Differentiate which IRC Section notes that any income, property, or other benefit received is considered "gross income" unless specifically excepted or excluded
- Recognize which type of payment that is excludable from income
- Recongize which type of payment should be reported on Form W-2
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
Instructor
Allison McLeod
Professor McLeod, LL.M., JD, CPA, is currently a full-time Senior Lecturer at the University of North Texas, where she has taught classes in Corporate Income Taxes, Multi-jurisdictional Taxes, Individual Taxes, Tax Research, Ethics and Financial Accounting. She has taught as an adjunct professor at the University of North Texas College of Law.
Prior to Professor McLeod going into academia, she worked for 18 years in industry and in a Big Four accounting firm. Professor McLeod earned a law degree from Baylor School of Law, and an LL.M. degree in Taxation from Southern Methodist School of Law. She has been a licensed CPA since 1993 and has been licensed to practice law since 1992. Professor McLeod has enjoyed teaching live ethics course to CPAs since 2011 and is the owner of
www.cpaethicsonline.com, which offers on-line self-study courses to CPAs. She currently serves on the Professional Ethics Committee of the Texas Society of CPAs.which offers on-line self-study courses to CPAs. She served on the Professional Ethics Committee of the Texas Society of CPAs and the AICPA CPA Exam Committee (REG).