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Confidentiality provisions in settlement documents are one way that wrongdoers help to hide their conduct from further responsibility. But there are other problems with such confidentiality provisions that should also cause litigants to reject them. One such problem is that a confidentiality provision may give rise to negative tax consequences. In 2003 the U.S. Tax Court ruled that $80,000 of a $200,000 settlement for Eugene Amos was actually for confidentiality (rather than injuries) and was therefore taxable. Eugene Amos, Jr. v. Commissioner of Internal Revenue, U.S. Tax Court Docket No. 13391-01 (Dec 1, 2003). As a result of this decision, Mr. Amos was required to pay income taxes on $80,000 of the funds received from the wrongdoer (Dennis Rodman).
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Hawaii Injury Lawyer | Attorney, Injury Attorney Hawaii Hawaii Injury Lawyer | Attorney- for Traumatic Brain Injury, Head, Spinal Cord, Disc/Disk, Burn Injuries- William Lawson- over 25 years experience as an Injury Attorney Hawaii.
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Personal Injury Attorney Hawaii, Personal Hawaii Injury Lawyer | Attorney Personal Injury Attorney Hawaii William Lawson- over 25 years experience as a Personal Injury Lawyer in Hawaii- Best lawyer's Multimedia site on the Web!
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