The Treasury Department has announced that the Society of Settlement Planner’s request to clarify section 468B’s tax treatment of a single-claimant qualified settlement fund is on their 2006 Priority Guidance Plan. In its August 15, 2006 joint statement it stated that the 264 projects should be completed between June 2006 and July 2007. This request has been with Treasury since June 19, 2003. http://www.irs.gov/pub/irs-utl/2006-2007pgp.pdf.
Allstate Life Insurance Company announced today that John McCulloch, the manager of Structured Settlements at Allstate, has accepted the position of Vice President of Marketing for EPS Settlements. This move is effective September 16, 2006. Ron Johnson, Assistant Vice President of Allstate Life Insurance Company will take over managing the Structured Settlements department. Mr. Johnson has over 20 years of experience as an officer of Allstate Life Insurance Company.
Here is a pdf of the Murphy v. IRS case Murphy v. IRS — F.3d — 2006 WL 24113372, D.C. Cir., Aug. 22, 2006 (Slip opinion No. 05-5139).
There has been an AP wire article on this that was carried in the New York TImes see New York Times . Tax Code on Emotional Damages Tossed. August 22, 2006.
Also there wasn at least one commentary in the financial wires on this topic on August 23, see financial blog reaction to Murphy.
Murphy v. I.R.S. — F.3d — 2006 WL 24113372, D.C.Cir., Aug 22, 2006 (Slip Opinion No. 05-5139).
What the Murphy court said is if you are emotionally harmed or if your reputation is injured, you get to keep all of the damages and not pay any taxes.
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I consider myself to be a student of Structured Settlements. One goal of this blog is to relay interesting information about this topic to readers.
Please let me know if I can ever improve on this goal.