DealFlow Media's Structured Settlements Wire has delivered yet another howler!
DealFlow Media inaccurately reported that a consortium of structured settlement agencies said it received a private letter ruling (PLR) from the Internal Revenue Service allowing the use of "tax-exempt structured settlements" for employment law cases.
It was clear from the press release from IFS that the PLR clarified tax-deferral.
DealFlow Media also inaccurately reported that non-qualified assignments, typically utilized for legal awards other than personal injury claims, have been a growth area in the otherwise flat structured settlement industry, according to several structured settlement consultants. Up to the private letter ruling, non-qualified assignments involving employment law have been subject to taxation.
- A claim and an award are two different things
- LIMRA reported only last week that the industry premium was up 7% in the first quarter, a fact reported by DealFlow Media.
- A structured settlement may be used for to resolve a claim, a settlement but not an award. A structured judgment is used with an award, unless the award is compromised, which therefore makes it A SETTLEMENT.
- "Non qualified assignments" are not subject to taxation. Therefore what follows in the above sentence is moot. A "non qualified assignment" is a method to resolve claims for damages that do not fall within the income tax exemptions under IRC 104(a)(1) or IRC 104(a)(2). Swish!
- Tax payers are subject to taxation.
- A tax payer may be an individual or an entity, such as a corporation or trust.
- In the Business Wire report of the PLR, Co-author of the PLR, John McCulloch clear states tax-deferral not tax-exempt.
The publication "Structured Settlements Wire" is a failure; it is a joke to the structured settlement industry.
If you are Brett Goetschius, the DealFlow Media chief editor, what level of reading comprehension do you expect when you hire your reporters? Do you require them to actually read what they are reporting on?
Read it yourself.
If you are a subscriber to Deal Flow Media's Structured Settlement Report, how's that working out for you? Value for money?
It is interesting to note that, in addition to serial slagging off of the structured settlement industry, with little to no criticism of the factoring industry, waxing poetic about JG Wentworth, and an abject chicken on "laying" out specifics to back up his "factoring Miracle Gro" advocacy, Patrick Hindert has never publicly criticized or critiqued DealFlow Media. Draw your own conclusions.