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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
Amy L. Woodward, Esq.

Century Square
1188 Bishop St. Suite 2902
Honolulu, HI 96813

New client hotline:
(808) 524-5300

Pearl City, Aiea and Waipahu:
(808) 671-7600

Main business phone:
(808) 528-2525

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Products Liability - Cases & Comment

Jones Act- maritime law and seaman cases

The Constitution Of The State Of Hawaii

Recent Personal Injury and Car Accident News

Game Truck Georgia was recently hit with a $4.7 million judgment for injuries arising out of a game of "bubble soccer". But this was after they had pleaded with their insurer to settle those same claims for a pretrial offer of $1 million - which was within their policy limits. Their insurer, Atlantic Specialty Insurance, declined those offers and forced the case to trial. Now the attorneys for Game Truck Georgia are chasing their own insurance company for its bad faith refusal to settle - a refusal which led to the insolvency and desctruction of their business.

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