The Receipt of Cash for Losses of Personal Rights

5 Pages Posted: 7 Jan 2010

See all articles by Erik M. Jensen

Erik M. Jensen

Case Western Reserve University School of Law

Date Written: January 6, 2010

Abstract

The D.C. Circuit’s first decision in Marrita Murphy v. IRS, concluding that a recovery for emotional distress was not taxable, received wide criticism. This viewpoint demonstrates that, contrary to conventional wisdom, the IRS before Murphy had a well-developed view that the receipt of cash for loss of a personal right was not a taxable event, regardless of whether any basis recovery or statutory exclusion was involved.

Keywords: Marrita Murphy v. IRS, 460 F.3d 79 (D.C. Cir.), Compensation – Loss of Personal Rights, Taxable Income, Taxation, Accession to Wealth, IRC 104(a)(2)

JEL Classification: K13, K34

Suggested Citation

Jensen, Erik M., The Receipt of Cash for Losses of Personal Rights (January 6, 2010). Tax Notes, p. 103, January 2010, Case Legal Studies Research Paper No. 2010-2, Available at SSRN: https://ssrn.com/abstract=1532406

Erik M. Jensen (Contact Author)

Case Western Reserve University School of Law ( email )

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Cleveland, OH 44106-7148
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216-368-2086 (Fax)

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