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Amos v. Comm'r of Internal Revenue

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Confidentiality provisions in settlement documents are one way that wrongdoers help to hide their conduct from further responsibility. But there are other problems with such confidentiality provisions that should also cause litigants to reject them. One such problem is that a confidentiality provision may give rise to negative tax consequences. In 2003 the U.S. Tax Court ruled that $80,000 of a $200,000 settlement for Eugene Amos was actually for confidentiality (rather than injuries) and was therefore taxable. Eugene Amos, Jr. v. Commissioner of Internal Revenue, U.S. Tax Court Docket No. 13391-01 (Dec 1, 2003). As a result of this decision, Mr. Amos was required to pay income taxes on $80,000 of the funds received from the wrongdoer (Dennis Rodman).

 

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Accident Lawyer Hawaii

William H. Lawson, Esq. and
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In August 2018 3M Co. agreed to pay $9.1 million to settle allegations that it and its predecessor, Aearo Technologies Inc, knowingly sold defective combat ear plugs to the U.S. military. The ear plugs were too short for proper insertion into the users' ears and could easily loosen and not perform effectively. Military personnel who suffered hearing loss during combat or training exercises between 2003 to 2015 may qualify for a one-time award. For more on defective product claims, see: Honolulu product liability claims.





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