sexual harassment suit

[djaj23]

I recieved a settlement for a sexual harassment lawsuit. Do I have to pay taxes on it? Would I have to pay on the full amount or on the 55% I got to keep after the lawyer took her cut? Since I didnt file, what can I do if the gov't asks me whats up? Is there a stupidity defense?

 

[Taxguy]

>>Is there a stupidity defense? <<

Generally not,...but in your case it may work.

 

[djaj23]

lawsuit

So, what will happen if the govt wants me to pay? What can I say? Will there be a penalty?

 

[Jeter]

Ok, it would probably go something like this...

IRS: We found out that you recieved a large sum of money for which you didn't pay taxes. Here's your chance to set up a monthly payment plan to start.

You: But...

IRS: You can either pay your taxes or face prison.

You: Where do I sign

Remember that there are always 2 certainties in life. Both of them will catch up to you sooner or later.

Jeter