Legal Question in Personal Injury in New York

Re: Why are they asking for tax returns

If you are self-employed (or a 1099 consultant) and are claiming lost wages, Defendants are entitled to your tax returns or authorizations for your returns. It is the only way Defendants can verify that your lost wages are not exagerrated. If you are not self-employed or are not claiming lost wages, you do not have to turn over tax returns. If you are a W2 employee, an authorization for attendance and wage records from your employer is sufficient.

Re: Why are they asking for tax returns

Good question. It is generally accepted that if you are claiming lost wages, or loss of future earnings, that the defendant is entitled to look at your tax returns. This gives an idea of what your annual income was from one year to the next, how your income may have been impacted as a result of your injuries, and will also provide a basis for an expert to calculate loss of future earnings if your injuries are permanent in nature.

If you are not making a claim for lost wages or income in your complaint (and insurance defense lawyers typically use a form request that always asks for the returns), then discuss it with your lawyer. If they are not relevant, then your lawyer should be able to stipulate that no such claim is being made, and you won't have to produce them.