tax liability
I have been awarded money from Engle Trust Fund in Florida for the tobbacco related deaths of both of my parents, they are not saying this is for compensatory damages or defining the payment. Will I owe taxes on this money?
1 Answer from Attorneys
Re: tax liability
IT WILL DEPEND ON WHAT THE DAMAGES ARE THAT ARE BEING COMPENSATED. THE IRS WILL EXAMINE THE DEMAND LETTERS, NEGOTIATIONS, PLEADINGS, ETC AND WILL NOT SIMPLY RELY UPON THE CLASSIFICATION DESIGNATED IN THE SETTLEMENT AGREEMENT. THERE HAS DEFINATELY BEEN A MOVEMENT TO MAKE IT MORE LIKELY THAT THE AWARDS ARE TAXABLE, BUT, IN ORDER TO COME TO A LEGAL CONCLUSION, A CAREFUL REVIEW OF HOW AND WHY YOU RECEIVED THE AWARD IS NECESSARY. WE CAN PERFORM THAT ANALYSIS SHOULD YOU WANT IT DONE. MY CONTACT INFORMATION IS BELOW. PLEASE LET ME KNOW IF WE CAN BE OF SERVICE TO YOU.
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