Jennifer Benda

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NPR Cites BakerHostetler Analysis of Tea Party Class Action Claims v. IRS

In an article discussing social media and the law, NPR refers to a recent Law360 Article written by Casie Collignon and Jennifer Benda of BakerHostetler discussing Tea Party Group’s lawsuit against the IRS, claiming that the IRS committed Privacy Act and constitutional rights violations by unfairly delaying and scrutinizing their and similar organizations’ filing for tax-exempt status pursuant to Section … Continue Reading

IRS Fighting Hard to Avoid Tea Party Class Action Claims

The IRS recently filed a motion to dismiss class action claims brought by Tea Party groups.  In NorCal Tea Party Patriots, et. al. v. IRS, et. al., S.D. Ohio, Case No. 1:13-cv-00341, Tea Party groups asserted that the IRS singled out their organizations when those organizations sought exemption from taxation pursuant to Section 501(c)(4) of … Continue Reading

Tax Court Rules that Payments by Tobacco Distributor to Tobacco Master Settlement Agreement Qualified Settlement Fund Not Deductible Until Paid

In Suriel v. Comm’r, 141 T.C. No. 16 (Dec. 4, 2013), the Tax Court ruled that, under the specific facts in this case, the economic performance rules under IRC Section 461(h), permitting a tax deduction for certain liabilities when a liability is fixed and before the liability is actually paid, did not trump the qualified … Continue Reading

IRS Says Class Action Settlement Incentive Awards in Wage Based Claims Are Taxable As Wages

On March 15, 2013, the IRS issued a private letter ruling responding to a request for a determination of whether incentive awards paid to class representatives under a settlement agreement resolving a class action suit against an employer under the Fair Labor Standards Act were wages for employment tax purposes.  In the Ruling, the IRS … Continue Reading

IRS Reporting Requirements for Class Action Settlement Payments and Court Awarded Damages

When finalizing class action settlements, or paying damage awards after a class action judgment, it is important to be mindful of the taxation of these payments and the related IRS information reporting requirements triggered by these payments. In general, businesses and persons engaged in a trade or business are responsible for filing Form 1099-MISC to … Continue Reading