Friday, March 22, 2013


Are Monies Received From a Court Judgment Taxable?

They could be.  The Tax Court ruled in favor of the IRS requiring the taxpayer to include in taxable income (1) Proceeds the taxpayer received plus (2) The amount awarded to the attorney.   The court also upheld IRS's imposition of an accuracy-related penalty. Raphael Dang-Quang Cung, TC Memo 2013-81

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