A proposed settlement would allow FTX, formerly one of the largest crypto trading exchanges in the world, to whittle down its tax claim with the IRS to just $885 million.
The tax treatment of litigation damages is varied and complex. Even worse, in some cases, legal fees can't be deducted. That can mean paying tax on 100%, even if 40% off the top goes to your lawyer, unless you qualify for one of the ways to deduct legal fees under new tax law. The rule for compensatory damages for personal physical injuries, like a serious auto accident, is supposed to be easy. There, the compensatory damages should be tax free under Section 104 of the tax code. In employment ca...
Tax Court cases, the IRS has decided to offer settlements to taxpayers currently under exam. In recent days, the IRS started sending notices to up to 200 taxpayers. Tax law generally allows...
Tax settlement firms claim they can reduce or even eliminate the amount you owe to the IRS. Find out the facts behind this alluring fiction.
According to a June 3 filing, the exchange and the IRS agreed to settle a $24-billion tax dispute. The IRS initially claimed FTX owed more than $44 billion in taxes, but the amount was...
IRC Section 104 provides an exclusion from taxable income with respect to lawsuits, settlements and awards. However, the facts and circumstances surrounding each settlement payment must be considered.
FTX has reached a tentative settlement with the IRS to resolve a $24 billion tax claim for a significantly lower amount, clearing a major hurdle in its bankruptcy proceedings
Not sure how to cover your tax debt to the IRS? Consider these options.
The IRS will calculate tax due at the partnership level at a rate of 21% with a 5% penalty added on. In TEFRA partnerships all partners must participate.
How taxes play out may sound crazy. About 40% might go to her lawyers, but the IRS says the whole amount is taxable, even the amount paid directly to her lawyer. She can argue that her civil rights...