Tax law touches virtually all economic and social transactions. Accordingly, no attorney – regardless of his or her specialty – can afford to be unaware of tax effects. Moreover, tax law changes frequently, and obsolete knowledge is a synonym for malpractice.
This article discusses federal income taxation of damages recovered in tort actions. There were important changes in the area in 1996. More recently, a significant statutory change was made in October 2004, and the Supreme Court decided a key case in January 2005
