Title

The Receipt of Cash for Losses of Personal Rights

Authors

Erik M. Jensen

Abstract

The D.C. Circuit’s first decision in Marrita Murphy v. IRS, concluding that a recovery for emotional distress was not taxable, received wide criticism. This viewpoint demonstrates that, contrary to conventional wisdom, the IRS before Murphy had a well-developed view that the receipt of cash for loss of a personal right was not a taxable event, regardless of whether any basis recovery or statutory exclusion was involved.

Keywords

Marrita Murphy v. IRS, 46 F.3d 79 (D.C. Cir.), Compensation - Loss of Personal Rights, Taxable Income, Taxation, Accession to Wealth, IRC 14(a)(2)

Publication Date

2010

Document Type

Article

Place of Original Publication

Tax Notes

Publication Information

16 Tax Notes 103 (2010)

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COinS Erik M. Jensen Faculty Bio