Are Emotional Distress Damages Income Subject to Tax? No, Says the DC Court of Appeals in Murphy v. United States
Author: G.J. Stillson MacDonnell.; William Hays Weissman.
Source: Volume 24, Number 02, Winter 2007 , pp.155-159(5)
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Abstract:
On August 22, 2006, the Court of Appeals for the District of Columbia Circuit held it unconstitutional, within the meaning of the Sixteenth Amendment, to tax compensatory damages for emotional distress. Murphy v. United States. This opinion is likely to cause many plaintiffs’ counsel to immediately claim all emotional distress damages are nontaxable, but the decision is not so simple.Keywords:
Affiliations:
1: Littler Mendelson, P.C; 2: Littler Mendelson, P.C.