by Structured Settlement Watchdog
Despite what many advertise, what "cash now", "money now" or other settlement purchaser/settlement transfer companies engage in, is not structured settlements. What they do is legally defined as a structured settlement factoring transaction in the United States' Internal Revenue Code.
The Internal Revenue Code provides for a whopping 40% excise tax on the amount of the discount the "cash now", "money now" or other settlement purchaser/settlement transfer company charges against your the structured settlement payment rights it is acquiring from you, if such transfer is not approved in advance in a "'qualified order" by an appropriate Court.
Here is a link to IRS Form 8876 which is titled "Excise Tax on Structured Settlement Factoring Transactions". At the bottom of the form you can see that the IRS has several definitions which pertain to the subject matter of this blog.
Companies whose business is structured settlement factoring transactions or specialty finance, who imply through "slight of hand" or "tongue in cheek" or "nod nod wink wink" that they do structured settlements or provide structured settlement quotes, when they (1) do not posssess insurance licenses (2) are not appointed by any annuity issuer that manufactures structured settlement annuities (3) may not be registered to do business in your state, are full of it.