Former structured settlement broker and Tulsa attorney Richard B. Risk, Jr. ("Dick Risk") of the Risk Law Firm, issued comments on proposed changes to regulations on the exclusion of physical injury or sickness damages from gross income. The proposed changes to the Regs concern the removal of the requirement that personal injury damages be based on "tort or tort-type rights".Download 2009_Tax_Notes_Today_192-21
Risk has asked the IRS to publish rules on the application of the economic benefit doctrine to amounts received to resolve claims. The economic benefit doctrine is one of the major arguments raised by opponents to the single claimant QSF.
Risk has essentially suggested wrapping the support points to the single claimant 468B QSF argument into IRC 104. Risk's comments appeared in Tax Notes October 7, 2009. The then 7 year pending issue of guidance on the single claimant 468B was removed from the Treasury Department's 2009-2010 Priority Guidance Plan much to the chagrin of its proponents.
In his November 28, 2009 "sour grapes" about the Priority Guidance "swansong", Patrick Hindert cited that Risk " interprets the decision to remove the single claimant 468B project from the Priority Guidance Plan as evidence that sufficient guidance favoring single claimant 468B QSFs already exists. Risk points to I.R.C. § 7805(d) which requires the Treasury Secretary to “prescribe all needful rules and regulations for the enforcement of [the Internal Revenue Code].” Risk concludes that Treasury’s decision is an acknowledgment that additional guidance is not “needful.” I guess that explains the Risk kitchen sink "strategy" described in the above commentary.