by Structured Settlement Watchdog
Being an FDIC insured institution can't shield structured settlement consumers from AnFED Bank's contribution to the poo stew of financial illiteracy that plagues the structured settlement secondary market.
Here is where AnFED Bank is FUBAR on a very basic structured settlement fundamental:
Q. Do I have to pay tax on the lump sum of cash I receive from selling my structured settlement to AnFed Bank?
A. No. Pursuant to Internal Revenue Code Section 104(a)(2), court-ordered structured settlement assignments are tax free. Therefore, you will not have to pay tax on the
AnFed Bank's structured settlements faq is silly wabbit because:
- IRC 104(a)(2) says nothing about assignments, let alone "court-ordered assignments" or structured settlements. It is simply a tax exemption for damages on account of personal physical injury or physical sickness
- The only place in the Internal Revenue Code where the word " structured settlement" appears is IRC 5891(c)(1). One would think that AnFed Bank would be fluent in the tax law that is fundamental to the the business of AnFed Bank, particularly when IRC 5891 imposes a 40% excise tax on the likes of AnFed Bank, if they do not comply with the tax law when buying annuitants' structured settlement payment rights.
- IRC 130 has to do with qualified assignments. The tax exclusion afforded by IRC 130 inures to benefit of the qualified assignment company when the structured settlement is first established.
- Qualified assignments are not the same as assignments of structured settlement payment rights to investors pursuant to a "qualified order" in a structured settlement factoring transaction.
AnFed gets the "AnFudd" Scalp Treatment