We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code. Descriptions of Chapter 7 and Chapter 13 Bankruptcy plans available below.
The IRS has successfully gained access to tax damage awards to injured parties and it applies to settlements before litigation and to jury awards.This new law imposes taxes on punitive damage awards and all damages for non-physical injuries. Therefore awards for emotional suffering may be taxable. The definition of physical injuries is not always clear in some cases and the courts will most likely look to the origin of the claim to determine whether or not the damages flow from a physical injury or some other source. This rule applies to settlements as well as jury awards, therefore in all settlement releases or documents, the monetary amount should be labeled or clearly identified as compensatory damages for physical injuries. The law appears at: 26U.S.C. sec.104. Compensation for injuries and sickness. It became effective January 1, 1996.
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