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Lawsuits, Awards, and Settlements Audit …

Lawsuits, Awards, and Settlements Audit Techniques Guide NOTE: This document is not an official pronouncement of the law or the position of the Service and cannot be used, cited, or relied upon as such. This guide is current through the publication date. Since changes may have occurred after the publication date that would affect the accuracy of this document, no guarantees are made concerning the technical accuracy after the publication date. Audit Guide Rev. 5/2011 1 Contents Chapter 1 Introduction and Issues .. 2 Introduction .. 2 Issues .. 3 Chapter 2 Taxability of Lawsuit Payments .. 4 Terminology/Definitions .. 4 Tax Treatment of Awards and Settlements .. 7 Chapter 3 Other Related Topics .. 13 Payroll and Self-Employment Tax Considerations .. 13 Amount to be Included in Gross Income .. 16 Deduction for Attorneys' Fees .. 17 Accrued Interest on Court Judgments.

Lawsuits, Awards, and Settlements Audit Techniques Guide . NOTE: This document is not an official pronouncement of the law or the position of the Service and cannot be used, cited, or relied upon as such. This guide is current through the publication date.

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