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 )

11075 East Boulevard
Cleveland, OH 44106-7148
United States
216-368-3613 (Phone)
216-368-2086 (Fax)

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