Is a Civil-Suit Settlement Taxable if Monetary Award is Made to a Non-Profit Rather than to the Plaintiff?
Submitted by Anonymous on Tue, 06/14/2011 - 15:22
In particular, is a Plaintiff, who agrees to settle a suit on terms that require the Defendant to contribute to non-profits designated by the Plaintiff, required to pay taxes on those contributions, even though the Plaintiff might collect much less, or nothing, from the settlement?