Best Business Attorneys in Annapolis, MD

Are you facing an IRS examination challenging the taxability of your legal settlement or the deductibility of your legal fees? Don't face it alone. I am a local tax attorney and CPA, and I'm here to stand with you. The IRS has specific rules regarding the taxability of settlements and judgments. Damages received due to personal physical injuries or physical sickness are generally not included in gross income. However, punitive damages and damages for non-physical injuries like emotional distress are generally taxable. In addition, even if you paid a contingent fee to your attorney, 100% of the settlement is generally still income to you. The deductibility of legal fees tied to your settlement can be a complex matter. Generally, business-related legal fees can be deducted, but personal legal fees cannot. However, there are exceptions. For instance, legal fees in certain employment claim cases can be deducted. If the IRS is challenging your position, it's crucial to have an experienced tax attorney by your side. I can help you understand the complexities of your situation, provide guidance, and represent you in your dealings with the IRS. Don't let the stress of an IRS examination overwhelm you. Give me a call, and let's work together to resolve this issue. Remember, when it comes to taxes, it's always better to have an seasoned professional in your corner.