Tax-Free Wrongful Imprisonment Recoveries
4 Pages Posted: 9 Mar 2011
Date Written: February 21, 2011
Abstract
Although wrongful incarceration and similar recoveries are becoming common and can proceed under several different legal theories, their tax treatment has received relatively little attention. In ILM 201045023, the IRS treated a recovery as excludable from income based on personal physical injuries, prompting many in the popular press to suggest that the tax issues surrounding those recoveries are resolved.
Suggested Citation: Suggested Citation
Wood, Robert W., Tax-Free Wrongful Imprisonment Recoveries (February 21, 2011). Tax Notes, Vol. 130, No. 8, 2011, Available at SSRN: https://ssrn.com/abstract=1781126
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