Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Medical Malpractice Law & StrategyKickerFeaturesTopicsLitigationSectionsNewsLJN Newsletters

Full Court May Weigh Taxation of Damages

By Marcia Coyle
November 29, 2006

A federal appeals court is weighing whether to review a controversial tax decision in which a unanimous three-judge panel struck down as unconstitutional the federal income tax on nonphysical, compensatory damages awards. (See 'Court Tosses Federal Tax Statute Covering Emotional Damages,' Medical Malpractice Law & Strategy, Nov. 2006). Claiming the case is one of 'exceptional importance' to the execution of the nation's tax laws, the Bush administration recently asked the full U.S. Circuit Court of Appeals for the District of Columbia to rehear Murphy v. U.S., No. 05-5139. In October, the court, on its own motion, ordered lawyers for Marrita Murphy to respond to the government's rehearing petition, a signal that the court is interested, according to some circuit watchers.

The Murphy decision, stemming from a whistleblower lawsuit, ignited debate and criticism among tax, employment and constitutional scho-lars and litigators whose descriptions of the decision ranged from 'silly' and 'reckless' to 'momentous' and 'epochal.' The panel decision was written by Chief Judge Douglas H. Ginsburg, who was joined in full by judges Judith W. Rogers and Janice Rogers Brown ' an unusual union of a moderately conservative judge, a liberal judge and a very conservative judge, respectively.

This premium content is locked for LJN Newsletters subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
The DOJ's Corporate Enforcement Policy: One Year Later Image

The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.

The DOJ's New Parameters for Evaluating Corporate Compliance Programs Image

The parameters set forth in the DOJ's memorandum have implications not only for the government's evaluation of compliance programs in the context of criminal charging decisions, but also for how defense counsel structure their conference-room advocacy seeking declinations or lesser sanctions in both criminal and civil investigations.

Use of Deferred Prosecution Agreements In White Collar Investigations Image

This article discusses the practical and policy reasons for the use of DPAs and NPAs in white-collar criminal investigations, and considers the NDAA's new reporting provision and its relationship with other efforts to enhance transparency in DOJ decision-making.

Bankruptcy Sales: Finding a Diamond In the Rough Image

There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.

A Lawyer's System for Active Reading Image

Active reading comprises many daily tasks lawyers engage in, including highlighting, annotating, note taking, comparing and searching texts. It demands more than flipping or turning pages.