Delay damages are taxable income under federal law even when they are awarded to a personal injury plaintiff because their function and purpose indicate that they are not paid “on account of personal injury,” a federal judge has ruled.
In her 21-page opinion in Francisco v. Internal Revenue Service, U.S. District Judge Anita B. Brody rejected the argument that delay damages in Pennsylvania are any different from the pre-judgment interest awarded in other states, which three federal appellate courts have found to be taxable.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
