Tax Law Attorney Rob Wood “IRS Speaks Out on Employment Lawsuit Settlements”

Rob Wood writes in a recent edition of ‘Tax Notes” …”Claims for wrongful termination, sexual harassment, and various forms of discrimination (especially race, gender, age, and disability) have burgeoned over the last few decades. To a lesser (but still significant) extent, litigation over the tax treatment of the resulting settlements and judgments has also been active.” The IRS has released a memorandum titled Income and Employment Tax Consequences and Proper Reporting of Employment …