Tax of Non-Physical Injury Award

Although a federal law exempts from taxes compensation received for physical injuries, a panel of the United States Court of Appeals for the District of Columbia Circuit, announced that taxing awards for nonphysical compensatory damages did not violate the Constitution. This ruling reverses a prior ruling on this issue by the court.To read more, please follow this link:

http://www.nytimes.com/2007/07/04/washington/04ruling.html?ex=1341288000&en=dcb578869acdb114&ei=5124&partner=permalink&exprod=permalink