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Author: Frank J. Doti Publisher: ISBN: Category : Languages : en Pages : 24
Book Description
In the Small Business Job Protection Act of 1996 Congress decided to limit the exclusion for personal injury awards in Internal Revenue Code section 104(a)(2) to any compensatory damages received on account of personal physical injuries or physical sickness. Previously the law did not contain the word quot;physical.quot; Thus, Congress intended to eliminate the benefits of the exclusion for non-physical torts such as employment discrimination and defamation. Unfortunately, neither the law nor legislative history provides sufficient explanation of the meaning of quot;physical.quot; The author discusses the nature of the ambiguities and suggests that the whole purpose of the exclusion is being frustrated because Congress should have focused on what the author calls the quot;human capitalquot; theory of the exclusion. As a result, the author suggests alternatives to the wording of the exclusion to permit non-taxability only to the extent the victim suffered a loss to his/her physical well being including emotional trauma. In the case of damages awarded for loss of earning power, they should, unlike current law, be taxed even in the case where the victim suffered a physical injury or sickness.
Author: Frank J. Doti Publisher: ISBN: Category : Languages : en Pages : 24
Book Description
In the Small Business Job Protection Act of 1996 Congress decided to limit the exclusion for personal injury awards in Internal Revenue Code section 104(a)(2) to any compensatory damages received on account of personal physical injuries or physical sickness. Previously the law did not contain the word quot;physical.quot; Thus, Congress intended to eliminate the benefits of the exclusion for non-physical torts such as employment discrimination and defamation. Unfortunately, neither the law nor legislative history provides sufficient explanation of the meaning of quot;physical.quot; The author discusses the nature of the ambiguities and suggests that the whole purpose of the exclusion is being frustrated because Congress should have focused on what the author calls the quot;human capitalquot; theory of the exclusion. As a result, the author suggests alternatives to the wording of the exclusion to permit non-taxability only to the extent the victim suffered a loss to his/her physical well being including emotional trauma. In the case of damages awarded for loss of earning power, they should, unlike current law, be taxed even in the case where the victim suffered a physical injury or sickness.
Author: Lawrence A. Frolik Publisher: BNA Books (Bureau of National Affairs) ISBN: Category : Business & Economics Languages : en Pages : 264
Book Description
This treatise covers the taxability and deductibility of awards, settlements, and related expenses in personal, property, and business loss tort cases. The changes resulting from the 1986 Tax Reform Act on taxation of losses and recoveries for losses are discussed in detail.
Author: Tamara Larre Publisher: ISBN: Category : Languages : en Pages :
Book Description
The tax treatment of personal injury damages has been largely ignored in Canada, despite questionable authority for the generally accepted position that they are not taxable. Courts have reasoned that personal injury damages are not subject to tax because these awards replace lost human capital. However, this explanation became open to question after the introduction of capital gains tax in Canada.The author looks beyond taxation to disability policy in order to validate the tax exemption for personal injury damages. Specifically, the author examines two possible explanations for this tax treatment. According to the humanitarian justification, personal injury damages are not subject to tax because of feelings of pity or sympathy for the injured plaintiff. Commentary to date on the humanitarian justification has not recognized the relevance of disability studies, so a principal focus of this paper is on the contribution of the disability literature to the debate. Considering the disability literature, the author rejects the humanitarian justification by demonstrating that these views reinforce stereotypes and social barriers that actually contribute to disability. The author also examines the tax exemption for personal injury damages as a tax expenditure intended to provide income support for persons with disabilities. Because this program does not account for financial need and is only available to successful tort plaintiffs, the author argues that the program can not achieve an intended goal of advancing full participation in society. In view of the disability literature and government policy statements, neither explanation for the exemption reflects the values of equality, participation and full citizenship that inform disability policy in Canada. Because the tax exemption is not supportable as disability policy, the author advocates for continued debate to identify the appropriate tax treatment of personal injury damages.
Author: United States Publisher: ISBN: Category : Law Languages : en Pages : 1506
Book Description
"The United States Code is the official codification of the general and permanent laws of the United States of America. The Code was first published in 1926, and a new edition of the code has been published every six years since 1934. The 2012 edition of the Code incorporates laws enacted through the One Hundred Twelfth Congress, Second Session, the last of which was signed by the President on January 15, 2013. It does not include laws of the One Hundred Thirteenth Congress, First Session, enacted between January 2, 2013, the date it convened, and January 15, 2013. By statutory authority this edition may be cited "U.S.C. 2012 ed." As adopted in 1926, the Code established prima facie the general and permanent laws of the United States. The underlying statutes reprinted in the Code remained in effect and controlled over the Code in case of any discrepancy. In 1947, Congress began enacting individual titles of the Code into positive law. When a title is enacted into positive law, the underlying statutes are repealed and the title then becomes legal evidence of the law. Currently, 26 of the 51 titles in the Code have been so enacted. These are identified in the table of titles near the beginning of each volume. The Law Revision Counsel of the House of Representatives continues to prepare legislation pursuant to 2 U.S.C. 285b to enact the remainder of the Code, on a title-by-title basis, into positive law. The 2012 edition of the Code was prepared and published under the supervision of Ralph V. Seep, Law Revision Counsel. Grateful acknowledgment is made of the contributions by all who helped in this work, particularly the staffs of the Office of the Law Revision Counsel and the Government Printing Office"--Preface.
Author: Mark Cochran Publisher: ISBN: Category : Languages : en Pages :
Book Description
The Omnibus Budget Reconciliation Act of 1989 narrowed the scope of the Internal Revenue Code section 104(a)(2) -- personal injury damages from the recipient's gross income. The Act eliminated the exclusion for punitive damages in connection with a case not involving physical injury or sickness. Moreover, the amendment created a negative presumption that punitive damages received on account of physical injuries are excludable. The amendment compounded the problem of the allocation of recoveries between punitive and compensatory damages in cases involving nonphysical injuries, such as employment discrimination cases (which suffer from the additional complication that an award restoring back pay is taxable as wages). Congress should resolve these ambiguities by either taxing all punitive damages or limiting the exclusion to damages received on account of physical injuries.
Author: Frank J. Doti
Author: Frank J. Doti
Author: Lawrence A. Frolik
Author: 
Author: Robert W. Wood
Author: United States. Internal Revenue Service
Author: Tamara Larre
Author: United States. Internal Revenue Service
Author: J. Martin Burke
Author: United States
Author: Mark Cochran