Damages

Erin Andrews Wins A $55 Million Verdict…Now For The IRS Bill

In early March, after a two-week trial and eight hours of deliberations, a Nashville jury awarded TV sports reporter Erin Andrews $55 million in damages for her lawsuit against a Nashville hotel after she was videotaped in 2008 without her knowledge. Andrews sued for $75 million in damages for negligent infliction of emotional distress and invasion of privacy.

Hulk Hogan Wins $140 Million. Windfall For The IRS (And Lawyers) Too.

A Florida jury awarded Terry Bollea, much better known as Hulk Hogan, $115 million in a lawsuit against Gawker Media for publishing footage of him participating in sexual activity four years ago. Jurors found that the defendant acted with reckless disregard publishing the video and awarded Hogan $60 million for emotional distress and $55 million for economic injury. This could increase as jurors still have to reconvene and deliberate whether punitive damages are appropriate.

Qualifying for IRS Innocent Spouse Relief

When married taxpayers file jointly, which is often done because of certain benefits available to couples filing jointly, both taxpayers are jointly and severally liable for the tax and any additions to tax, interest, or penalties that arise from the joint return, even if their marriage is later dissolved. Joint and several liability means that each taxpayer is legally responsible for the entire liability.

Thus, both spouses on a married filing jointly return are generally held responsible for all the tax due even if one spouse earned all the income or erroneously claimed deductions. This is true notwithstanding the provisions of a divorce decree regarding a former spouse’s responsibility for any taxes due on previously filed joint returns. However, in rare cases, a spouse may obtain relief from joint and several liability.

TEN WAYS TO PREVENT IDENTITY THEFT

TEN WAYS TO PREVENT IDENTITY THEFTThe damages caused by identity theft may take years to fully remedy. Here are ten tips for avoiding identity theft:

1) Protect and monitor your credit. Regularly check your credit report to see if any fraudulent credit cards or accounts have been opened in your name. Monitor your credit by taking advantage of free credit reports and consider purchasing additional intermittent reports for continuous oversight of your credit. If and when necessary, place fraud alerts and credit freezes on your account.

TAX IDENTITY THEFT VICTIMS MAY OBTAIN COPIES OF FRAUDULENT RETURNS

TAX IDENTITY THEFT VICTIMS MAY OBTAIN COPIES OF FRAUDULENT RETURNS A victim of identity theft or a person authorized to obtain the identity theft victim’s tax information may request a redacted copy (one with some information blacked-out) of a fraudulent return that was filed and accepted by the IRS using the identity theft victim’s name and Social Security Number.

Due to federal privacy laws, the victim’s name and SSN must be listed as either the primary or secondary taxpayer on the fraudulent return or otherwise the IRS cannot disclose the return information. For this same reason, the IRS cannot disclose information about any tax return to any person listed only as a dependent. Partial or full redaction will protect additional possible victims on the return. However, there will be enough data provided for the taxpayer to determine how his or her personal information was fraudulently used.

IS THE IRS TRACKING YOUR CELL PHONE CALLS? IT LOOKS LIKE IT…

This past fall, IRS Commissioner John Koskinen admitted to the Finance Committee of the United States Senate that the IRS is tracking cell-phones. Apparently the IRS is using “stingrays”, also known as IMSI catchers or cell-site simulators, to sweep up the cell-phone signals of unsuspecting taxpayers. Recently, the IRS spent $71,000 to upgrade their cell-phone tracking equipment. Senators Charles Grassley of Iowa and Patrick Leahy of Connecticut demanded an explanation for the use of such equipment expressing their privacy concerns with such surveillance in a letter to Treasury Secretary, Jacob Lew. “The devices indiscriminately gather information about the cell phones of innocent people who are simply in the vicinity of the device,” the letter stated.

WHAT? I HAVE TO PAY TAXES ON MY LAWSUIT AWARD?

You’ve just received an award as the prevailing party in a lawsuit and it’s just a few weeks before the April 15th tax deadline. As you organize your documentation for the preparation of your taxes, you suddenly wonder if you have to pay taxes on the legal proceeds that you received a few weeks earlier. Are they indeed taxable?  Whether you must include the amount of the proceeds in your income depends on all the facts and circumstances of each individual case. It also depends upon the type of injury incurred.

Is Your Income Taxable

Is Your Income Taxable?
Generally, under IRS rules, all incomes are taxable, except if they are specifically excluded from income. Taxable income includes money earned, like wages and tips. It also includes bartering, an exchange of property or services
Certain incomes are usually excluded from income, such as
• Gifts and inheritances
• Child support payments
• Welfare benefits
• Damage awards for physical injury or sickness
• Cash rebates from a dealer or manufacturer for an item you buy
• Reimbursements for qualified adoption expenses
Under certain conditions, the following income may not be taxable::
• Life insurance. Proceeds paid to you because of the death of the insured person are usually not taxable. However, if you redeem a life insurance policy for cash, any amount that you get that is more than the cost of the policy is taxable.
• Qualified scholarship. In most cases, income from this type of scholarship is not taxable. This means that amounts you use for certain costs, such as tuition and required books, are not taxable. On the other hand, amounts you use for room and board are taxable.
• State income tax refund. If you got a state or local income tax refund, the amount may be taxable. You should have received a 2014 Form 1099-G from the agency that made the payment to you. If you didn’t get it by mail, the agency may have provided the form electronically. Contact them to find out how to get the form. Report any taxable refund you got even if you did not receive Form 1099-G.

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