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.
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.
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.
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.