by Structured Settlement Watchdog
When it comes to abject ignorance and misinformation about structured settlements on the Internet, Einstein Structured Settlements are champs. Having tracked these reprobates for more than 5 years it is clear, in my professional opinion, that these guys really do not have a clue what they are talking about. When it comes to taxes on structured settlement Einstein Structured Settlements is unreliable.
- Despite the well publicized coverage of the negotiations in Congress over tax reform, Einstein contends falsely.that "The IRS created fairly generous tax laws regarding court ordered settlements to help Americans deal with their problems". FACT: The United States Constitution gives Congress the power to levy taxes for the collection of revenue. Article 1 Section 8 of the Constitution reads, "The Congress shall have Power to lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States." However, income tax as didn't exist until the ratification of the 16th Amendment, in 1913.
- Instead of citing the tax code which is clear, Einstein gets all muddled between judgments and settlements and between physical damages and physical injury.
- Instead of reading the tax code, which provides that the IRC 104(a) exclusion does not apply to medical damages for which you have taken a IRC 213 deduction in a prior tax year, Einstein incorrectly states "You also won’t owe any income tax on money received to cover your medical bills. That obviously may or may not be the case, depending on the facts.
- Lottery winnings paid in installments are not structured settlements. See IRC 5891(c) (1) Structured settlement. The term “structured settlement” means an arrangement—
(A) which is established by—
(i) suit or agreement for the periodic payment of damages excludable from the gross income of the recipient under section 104(a)(2), or
(ii) agreement for the periodic payment of compensation under any workers’ compensation law excludable from the gross income of the recipient under section 104(a)(1), and
(B) under which the periodic payments are—
(i) of the character described in subparagraphs (A) and (B) of section 130(c)(2), and
(ii) payable by a person who is a party to the suit or agreement or to the workers’ compensation claim or by a person who has assumed the liability for such periodic payments under a qualified assignment in accordance with section 130.
Einstein also claims that it is the smarter way to manage your settlement despite Richart Ruddie and Ryan Blank not having an insurance or securities license or any relevant money management or financial planning professional credentials, not to mention having a demonstrable understanding of the fundamentals.
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