Settlements in harassment and abuse cases carry unique tax implications that can significantly affect both clients and counsel. This session will provide a practical roadmap for structuring settlements and navigating the complex tax rules that govern them. Experts will break down the strategies that protect clients’ recoveries, minimize risk, and keep agreements compliant with current law.

Key discussion areas include:

• Distinguishing the taxation of emotional distress versus wage components
• When (and how) to use structured settlements to maximize recovery
• Deductibility of attorney fees under today’s tax framework
• Drafting settlement agreements that avoid IRS scrutiny and red flags
• Section 104 exclusion for physical injuries and physical sickness
  • What sickness qualifies and what do you need to show?
  • Does PTSD qualify for exclusion?
  • How can you negotiate with employers over these issues?
• Tax Indemnity provisions
  • Should plaintiffs agree?
  • How to narrow their scope