MCLE Self-Study: Congratulations on Reaching the Settlement; Don’t Forget About the Tax Consequences
By Stephen J. Turanchik
Mr. Turanchik is an attorney at Paul Hastings LLP. His practice focuses on federal and state tax litigation and controversy matters.
Parties to an employment lawsuit will oftentimes spend hours, if not days, in settlement discussions. Quite frequently, it is only after an agreeable (or perhaps unagreeable) settlement has been reached that the counsel for the parties ask, "What about taxes?"
Origin of the Claim Doctrine