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IFS Obtains Favorable Private Letter Ruling on Resolving Taxable Claims with Periodic Payments
TALLAHASSEE, FL (June 20, 2008) Integrated Financial Settlements ("IFS"), a holding company of the largest group of structured settlement agencies in the United States, and consisting of a workforce of over 175 professional structured settlement consultants, has announced that it obtained a favorable ruling from the Internal Revenue Service on the use of a Non-Qualified Assignment to resolve an employment claim.
Structured Settlements, which provide tax-free periodic payments to an injured party, are solely available for physical injury claims and Workers' Compensation claims. The Private Letter Ruling, or PLR, while based on an employment claim, opens the door to using periodic payments to resolve a multitude of taxable claims, such as non-physical injuries, fraud, slander, wrongful imprisonment and other types of claims not excluded from income under the Internal Revenue Code.
"Settlements for non-physical injuries, including employment claims are fully taxable to the recipient", said John McCulloch, Vice President of Market Development for EPS and co-author of the Private Letter Ruling ("PLR"). "This can often lead to little or nothing left for a claimant after years of negotiations or trial. Using periodic payments, a claimant can defer taxes, taking payments over time to lessen the tax burden and let the funds grow. The payments can be tailored in a variety of ways to meet the claimant's specific needs."
The PLR was requested on behalf of a client with an employment claim stemming from a hostile work environment. Had the claim been paid out in a lump sum, most of the settlement would have been lost to taxes; instead, a series of periodic payments will provide the claimant with a secure, tax-deferred income stream, specifically tailored to the claimant's future needs.
About Integrated Financial Settlements (IFS)
The IFS family of companies is comprised of EPS Settlements Group, Structured Financial Associates, the Mangelsdorf Companies, Millennium Settlements and Mass Tort Settlement Services, with a workforce of over 175 professional structured settlement consultants. IFS has provided Structured Settlement services to its clients for decades and has unmatched expertise and experience in helping to resolve financial and employment related claims as well as traditional structured settlements for physical injury and Workers' Compensation claims.
For additional information please contact John McCulloch, JD, CSSC at
jmcculloch@epssettlements.com or (630) 696-4122.