Tax Traps in Class Action Settlements: Avoiding Overtaxation of Plaintiffs and Nondeductibiliy for Defendants
Recording of a 90-minute CLE webinar with Q&A
This CLE course will provide in-depth guidance to class action attorneys on the two-pronged challenge of tax consequences of settlements and awards. Counsel must ensure that the plaintiffs are not subject to taxation of fees received by their lawyer. The defendants will want to maximize the deductibility of these payments.
Outline
- Classes of deductible settlement payments
- Classes of nondeductible settlement payments
- Nature of the contingent fee "tax trap"
- Qualified settlement funds
- Other mitigation
Benefits
The panel will review these and other noteworthy matters:
- Principles of tax law relating to receipt of settlement payments
- Principles of tax law relating to payment deductibility
- Qualified settlement fund usage and implementation
Faculty

Phillip M. Krause, CSSC, CLMP
Managing Director of Strategic Planning
Ringler Assoc.
Mr. Krause serves as the Managing Director of Strategic Planning for Ringler Associates, the largest and oldest... | Read More
Mr. Krause serves as the Managing Director of Strategic Planning for Ringler Associates, the largest and oldest settlement consulting firm the in U.S. As a settlement consultant, he has worked on a variety of cases including the NFL concussion settlement, aviation losses, medical malpractice, product liability, employment and contract disputes, class action and mass torts. Mr. Krause manages the firm’s key strategic partner relationships and assists all firm consultants nationwide with complex cases, which often require more comprehensive planning. A subject matter expert in the financial services industry, he currently serves as a Council Member to the Gerson Lehrman Group and a FINRA Arbitrator.
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Robert W. (Rob) Wood
Managing Partner
Wood LLP
Mr. Wood has broad experience in corporate, partnership and individual tax matters. Concerning the tax treatment of... | Read More
Mr. Wood has broad experience in corporate, partnership and individual tax matters. Concerning the tax treatment of litigation settlements and judgments, he is perhaps the preeminent tax lawyer in the U.S. In addition, Mr. Wood is a frequent expert witness on tax matters in civil cases, in disputes over independent contractor versus employee classification, class actions, and tax and accounting malpractice cases.
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