Eleven months after ruling that taxing damage awards for nonphysical compensatory damages violated the United States Constitution, the United States Court of Appeals for the District of Columbia Circuit has reversed itself in Murphy v. IRS by holding that the United States can tax awards for emotional distress and injury to reputation.
The Murphy case has become a cause celebre among tax and constitutional attorneys - and has considerable importance for the structured settlement industry.
Robert W. Wood, a tax attorney who specializes in personal injury settlements and structured settlements, has consistently provided the best coverage of the Murphy case. Rob's articles appear on Wood & Porter's website. His audio podcasts are featured on the Legal Broadcast Network.
Mark Wahlstrom, host and chief blogger for The Settlement Channel, woke up early on Fourth of July to first communicate this story to the structured settlement industry. Mark's July 4, 2007 blog post includes links to immediate online coverage including this New York Times article. NSSTA followed later in the day with an email announcement about the Murphy case to its members.
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