Gain a better understanding of how to properly treat attorney fees in different cases like settlements, judgments, employment claims, and more.
The tax treatment of attorney fees and elimination of miscellaneous itemized deductions has created significant confusion for lawyers and their clients. Improperly deducting legal fees or failing to understand the new limits on deductions can lead to costly overpayment of taxes. This presentation will provide clarity on these complex tax issues. You’ll gain a comprehensive understanding of how to properly treat attorney fees in different cases like settlements, judgments, employment claims, whistleblower awards, and more. The elimination of miscellaneous itemized deductions will also be covered in depth, including the implications for legal fee deductibility. Recent tax law changes, IRS reporting requirements, and settlement structuring techniques using qualified settlement funds will be examined. With this knowledge, you’ll be able to maximize tax benefits for legal fees, avoid overpayment of taxes, and steer clear of IRS scrutiny. Staying up-to-date on these rules is crucial for attorneys to provide accurate tax advice and optimize outcomes for their clients.
Learning Objectives
- You will be able to define the rules for issuing IRS Form 1099.
- You will be able to describe the key considerations regarding the tax treatment of legal fees.
- You will be able to explain the difference in tax treatment of physical injury and non-physical injury cases.
- You will be able to identify cases where above-the-line deductions for legal fees apply.
Agenda
Tax Treatment of Legal Settlements and Judgments
- Comparison Between Settlements and Judgments
- 2018 Changes
- Legal Fees Overview
Non-Physical Injury Cases
- Employment vs. Non-Employment
- Whistle-Blower and Civil Rights Fees
- Fee Deduction Problems
Physical Injury Cases
- Tax Exclusion Overview
- Wording and Compromises
- PTSD Recoveries
- Sexual Harassment/Abuse
Tax Reporting on Forms 1099
- Overview
- Rules for Issuing IRS Form 1099
- Joint Payees
- IRS Form W-9
Structuring
- QSFs
- Settlement Wording
- Tax Indemnities
Speakers
Robert W. Wood, Esq.,
Wood LLP- Managing Partner, Wood LLP, a tax law firm
- Practice emphasizes taxation of settlements, litigation funding, tax controversies, and other areas of tax law
- An experienced speaker, having given large numbers of lectures and continuing education courses and programs to lawyers, accountants and enrolled agents on tax issues and has written many books and articles on tax issues related to the subject matter of this presentation
- Writes tax opinions, serves as an expert witness, and handles tax audits and dis-putes
- Author of Taxation of Damage Awards and Settlement Payments, Qualified Set-tlement Funds and Section 468B, and hundreds of articles
- Admitted to the bar in California, New York, the District of Columbia, Texas, Mon-tana, Arizona, Washington, and Wyoming and qualified as a Solicitor in England and Wales
- Certified by the California Board of Legal Specialization as a Specialist in Taxa-tion
Who Should Attend
This live webinar is designed for accountants, CPAs, CFOs, controllers, tax managers, tax preparers, presidents, vice presidents, bookkeepers, enrolled agents, accounts payable professionals, finance directors, and attorneys.
