26 CFR 1.104-1 - Compensation for injuries or sickness

Cite as26 CFR 1.104-1
    • This document is available in original version only for vLex customers

      View this document and try vLex for 7 days
    • TRY VLEX
94 practice notes
  • Rickel v. C.I.R., No. 89-1529
    • United States
    • United States Courts of Appeals. United States Court of Appeals (3rd Circuit)
    • April 3, 1990
    ...legal suit or action based upon tort or tort type rights, or through a settlement agreement entered into in lieu of such prosecution." 26 C.F.R. Sec. 1.104-1(c) (1989). See generally Threlkeld, 87 T.C. at 1297. Thus, "[t]he essential element of an exclusion under section 104(a)(2) is that t......
  • Murphy v. Internal Revenue Service, No. 05-5139.
    • United States
    • United States Courts of Appeals. United States Court of Appeals (District of Columbia)
    • July 3, 2007
    ...from gross income the amount of any damages received (whether by suit or agreement) on account of personal injuries or sickness," 26 C.F.R. § 1.104-1(c), does not distinguish between physical injuries stemming from physical stimuli and those arising from emotional trauma; rather, it tracks ......
  • Schmitz v. C.I.R., No. 93-70960
    • United States
    • United States Courts of Appeals. United States Court of Appeals (9th Circuit)
    • August 30, 1994
    ...legal suit or action based upon tort or tort-type rights, or through a settlement agreement entered into in lieu of such prosecution." 26 C.F.R. Sec. 1.104-1(c) In Hawkins, we set forth a two-part test for determining whether damages received in a lawsuit are excludable under Sec. 104(a)(2)......
  • Murphy v. I.R.S., No. 05-5139.
    • United States
    • United States Courts of Appeals. United States Court of Appeals (District of Columbia)
    • August 22, 2006
    ...from gross income the amount of any damages received (whether by suit or agreement) on account of personal injuries or sickness," 26 C.F.R. § 1.104-1(c), does not distinguish between physical injuries stemming from physical stimuli and those arising from emotional trauma; rather, it tracks ......
  • Request a trial to view additional results
84 cases
  • Rickel v. C.I.R., No. 89-1529
    • United States
    • United States Courts of Appeals. United States Court of Appeals (3rd Circuit)
    • April 3, 1990
    ...legal suit or action based upon tort or tort type rights, or through a settlement agreement entered into in lieu of such prosecution." 26 C.F.R. Sec. 1.104-1(c) (1989). See generally Threlkeld, 87 T.C. at 1297. Thus, "[t]he essential element of an exclusion under section 104(a)(2) is that t......
  • Murphy v. Internal Revenue Service, No. 05-5139.
    • United States
    • United States Courts of Appeals. United States Court of Appeals (District of Columbia)
    • July 3, 2007
    ...from gross income the amount of any damages received (whether by suit or agreement) on account of personal injuries or sickness," 26 C.F.R. § 1.104-1(c), does not distinguish between physical injuries stemming from physical stimuli and those arising from emotional trauma; rather, it tracks ......
  • Schmitz v. C.I.R., No. 93-70960
    • United States
    • United States Courts of Appeals. United States Court of Appeals (9th Circuit)
    • August 30, 1994
    ...legal suit or action based upon tort or tort-type rights, or through a settlement agreement entered into in lieu of such prosecution." 26 C.F.R. Sec. 1.104-1(c) In Hawkins, we set forth a two-part test for determining whether damages received in a lawsuit are excludable under Sec. 104(a)(2)......
  • Murphy v. I.R.S., No. 05-5139.
    • United States
    • United States Courts of Appeals. United States Court of Appeals (District of Columbia)
    • August 22, 2006
    ...from gross income the amount of any damages received (whether by suit or agreement) on account of personal injuries or sickness," 26 C.F.R. § 1.104-1(c), does not distinguish between physical injuries stemming from physical stimuli and those arising from emotional trauma; rather, it tracks ......
  • Request a trial to view additional results
2 firm's commentaries
  • Trial Attorney Tax Summary for Taxation of Settlements and Damages – Part 1: The Basics
    • United States
    • JD Supra United States
    • January 9, 2013
    ...tort law are punitive damages. Interest payable as part of the settlement should also be reported as income. IRC Sec 104(a)(2) and Treas. Reg. 1.104-1 provide that only payments that are received on account of a physical injury or physical sickness are excluded from income. The only payment......
  • New IRS regulation is no help to whistleblowers
    • United States
    • LexBlog United States
    • January 26, 2012
    ...a final regulation that reflects a 1996 law making payments for emotional distress damages taxable as income. The new regulation, cited as 26 CFR 1.104-1(c), makes clear that settlements and awards are taxable unless they are “attributable to a physical injury or physical sickness.” The reg......
5 books & journal articles
  • What Is Gross Income: Section 61 and the Sixteenth Amendment
    • United States
    • Basic Income Tax. Fifth Edition
    • March 9, 2017
    ...Persson ed., 1997). ... 28 Insofar as compensation for nonphysical personal injuries appears to be excludable from gross income under 26 C.F.R. § 1.104-1, the regulation conflicts with the plain text of § 104(a)(2); in these circumstances the statute clearly controls. See Brown v. Gardner, ......
  • On Human Capital
    • United States
    • December 1, 2017
    ...distress includes symptoms ( e.g. , insomnia, headaches, stomach disorders) which may result from such emotional distress. 27 See also Treas. Reg. § 1.104-1(c)(1). -494- Chapter 16 On Human Capital Chapter 16 because such costs would qualify for deduction under § 213 as medical expenses. Th......
  • 78 J. Kan. Bar Assn 6, 21 (2009). The Taxation of Tort Damage Awards and Settlements: When Recovering More for a Client May Result in Less.
    • United States
    • Kansas Bar Journal Nbr. 2009, January 2009
    • January 1, 2009
    ...a retirement pension or annuity measured by the employee's age, length of service, or prior contributions); Treas. Regs. § 1.104-1(b). Treas. Reg. § 1.104-1(b); See also Priv. Ltr. Rul. 200013005 (Exclusion allowed where statute increased original award by 10 percent for unreasonable delay ......
  • Vol. 4, No. 5, Pg. 14. IRC Section 1 04(a)2 Is Your Client's Award or Settlement Taxable.
    • United States
    • South Carolina Bar Journal Nbr. 1993, January 1993
    • January 1, 1993
    ...legal suit or action based upon tort or tort type rights, or through a settlement agreement entered into in lieu of such prosecution." Treas. Reg. § 1.104-1(c). Therefore, the analysis of whether damages are received on account of personal injuries and are excludable from gross income depen......
  • Request a trial to view additional results

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT