Hey Guys,

I am going to the National IOMA conference in New York City Thursday and Friday.  They have asked me to be a guest speaker.  The IRS will also be there with updates on what to expect for the coming year.  I will be sharing their information over the next few weeks with you.

I have been receiving a lot of questions relating to reporting settlement payments.

Settlements are only reportable if they are deemed taxable.  Generally punitive damages are considered taxable.  Damages that are not considered taxable include:

a.  Personal , physical injury or sickness

b.  Medical expense reimbursements

c.  Not fixed and determinable, such as property damages

Remember, if the check is made to the attorney and the claimant, you must find out if the settlement is taxable and report to both the attorney and the claimant.

For more information see IRS pub. 4345 (you will love this one because it is real short)!!!

Looking forward to seeing everyone in our SPRING COMPLIANCE seminars.