By John Darer® CLU ChFC MSSC CeFT® RSP CLTC
The IRS recently disallowed a doctor's deduction for "professional insurance premiums" paid to an offshore entity and then recovered by him through a home equity loan. The decision was sustained by the Tax Court which also held that he had unreported income. Fraud penalties were also imposed. So what does this have to do with structured settlements and structured attorney fees in particular?
- Well the doctor's name was "Child", and the abbreviated case style " Child v Commissioner.
Cite: Douglas D. Child et ux. v. Commissioner; T.C. Memo. 2010-58; Docket No. 11021-06; IRC Secs. 162 ; 163(h)(3) ; 446(b) ; 6663 .
On the other hand the seminal case for structured attorney fees is the completely unrelated Childs v Commissioner:
Cite: Richard A. Childs et al. v Commissioner of Internal Revenue 103 T.C. No. 36 Docket No. 15639-92
We live in a world where even one letter in a sound byte has the potential to create confusion. Thus I've chosen to frame the difference in the form of a lyric...
One Doctor Don't Stop No Show (loosely to the Tune of "One Monkey Don't Stop No Show" By The Honey Cone)
Cash Flow Must Go On..
Oh, One Doc-tor
Don't Stop No Show
If You Rip Off The Gov.
You're a Ho, You're a Schmo, You doe-doe
See The "CHILDS Case"
Is The Ace in The Hole
To struct-ure att-or-ney fees
"CHILD", It Don't Mean a Hill of Beans.
De-fer-ral my bud!
If You Please, If you Please If You Please
One Doc-tor Don't Stop No Show (to fade)
This author, John Darer is a Registered Settlement Planner and an expert in structured attorney fees. With the end of year approaching attorneys should learn more about how structuring their fees can benefit them.
More information about structured attorney fees