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- Apr 18, 2010
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I received a lawsuit settlement which was made up of a partial sum of back wages that came in the form of a paycheck, and the remaining sum constituted payment for personal injury and emotional distress resulting from a workplace assault. I was issued a 1099MISC for the non-wage related portion, and did not file it as income because I didn't believe that was taxable. I recently received a notice from the IRS regarding my failure to include this amount in my income, and need to file my disagreement next month. In preparing for a meeting with an accountant this week I'm trying to understand what options I have in attempting to prove that this should not have been taxable or to at least reduce the amount of the settlement sum that is considered taxable. If anyone has any suggestions or advice I would greatly appreciate it. 