Tax Law Expert Rob Wood Explains The IRS's Views On Bartering

Tax authorities eye barter income, require 1099s from barter exchanges.

Tax Lawyer Rob Wood Discusses Taxable Income When You Have No Cash

A little knowledge about the tax law can be a dangerous thing. You might get the sense from this brief romp through constructive receipt and economic benefit doctrines that you have a good sense of how to manipulate your own income. That is probably inaccurate.

Indeed, my main point is that there is much artifice in the tax law. Some of that can be helpful, and some of it is decidedly hurtful. If you have ever received a Form K-1 reporting phantom income to you when you received no cash, you know exactly what I mean!

Tax Lawyer Rob Wood "Even The IRS Has Time Limits"

Tax law expert Rob Wood wites in Forbes "If you face a tax audit and can legitimately point to the statute of limitations to head off trouble and expense, you should. Why should you have to prove you were entitled to a deduction (or have to find and produce yellowed receipts) if it is simply too late for the IRS to make a claim?

Given the importance of the statute--both to heading off audit trouble and to knowing when you may be able to throw some of those receipts away--it is surprising how few taxpayers are statute savvy."

Scott Drake discusses the article with Tax Law Channel host Robert Wood. (Wood and Porter)

Article PDF and more

Tax Lawyer Rob Wood "10 Ways To Audit Proof Your Tax Return"

In a recent Forbes article, tax lawyer Rob Wood (Wood and Porter) discusses simple ways to avoid an IRS audit.

Read the article

Tax Law Channel

Tax Law Expert Rob Wood on Structured Legal Fees

Tax Law Channel host Rob Wood discusses structuring legal fees...a versatile tool only available to contingent fee lawyers.

If an attorney has a contingent fee arrangement with a client, the lawyer may enter into a structured legal fee arrangement under which the defendant, instead of paying the attorney’s fees for the case in a lump sum at the time of settlement, can fund an arrangement that pays the fees over time. As discussed below, payments under a structured legal fee arrangement have been held to not be taxable until actually paid to the attorney. Structured legal fee arrangements are designed to level out the peaks and valleys that generally characterize the fluctuating income of plaintiffs’ attorneys. These arrangements let lawyers defer paying taxes on their fee income. Structuring legal fees is a good way to spread out income, reduce income tax burdens, provide for retirement, or contribute to estate planning.  

A structured fee arrangement will generally be funded by an annuity purchased by an assignment company. That company purchases the annuity with funds provided by the defendant in the case—funds that would have paid the lawyer’s fee. Properly set up, a legal fee structure takes the lump sum that would otherwise go to the client and puts it to work in a tax-deferred annuity. The lawyer pays tax only as he or she receives the periodic payments. For example, instead of receiving a $500,000 lump sum, the lawyer might receive $70,000 a year for ten years. The extra $200,000 in this example is attributable to the tax-deferred return on the money.

With all the talk of tort reform in Washington, plaintiffs’ lawyers may feel discriminated against by Congress in various ways. Even so, they are entitled to a benefit no one else receives: the ability to structure their legal fees. Indeed, contingent fee lawyers are the only ones who can structure legal fees.

Why Litigators Need Tax Experts

Tax Law Channel Host Rob Wood is clearly on a roll. He discusses a recent article he published in Tax Notes entitled "Why Litigators Need Tax Experts"

Read the article PDF

Rob Wood "IRS Speaks Out on Employment Lawsuit Settlements"

Rob Wood writes in a recent edition of 'Tax Notes" ..."Claims for wrongful termination, sexual harassment, and various forms of discrimination (especially race, gender, age, and disability) have burgeoned over the last few decades. To a lesser (but still significant) extent, litigation over the tax treatment of the resulting settlements and judgments has also been active."

The IRS has released a memorandum titled ‘‘Income and Employment Tax Consequences and Proper Reporting of Employment-Related Judgments and Settlements."

In this video, Tax Law Channel host and Wood and Porter partner Rob Wood comments.

Read the article PDF

Rob Wood Part 2 "Offshore Amnesty Deadline"

In March of this year the IRS announced a program called "tax amnesty, voluntary disclosure or offshore income settlement.. The orginal deadline of September 23 has been extended to October 15.  With so little time left, Rob discusses the 10 things you must know about this amnesty deal.

Read the article in the Los Angeles Daily Journal

Daily Tax Report Article

Rob Wood, host of the Tax Law Channel and partner at Wood and Porter in San Francisco discusses the IRS's offshore accounts amnesty deadline coming p Oct. 15.

Rob Wood "When Contractors Become Employees"

LB Network Tax Law Channel host Rob Wood writes in the "Daily Tax Record" 8/17/2009:

"The Top 10 things The IRS Wants You to Know When Contractors Become Employees"

 Download the PDF

"When the Good Lord created tax law experts, He wanted them to be like Rob Wood" (Lao Tzu)

 Scott gets the lowdown from Rob Wood:

IRC Section 104 Regulations Clarified by IRS

Attorney Rob Wood joins Mark Wahlstrom on this weeks Speaking of Settlement to discuss the release of new regulations and clarification on Section 104 and Section 130 damages. If you are a trial lawyer, settlement professional or tax professional you will want to know what this revision to IRC Section 104 is all about.

Section 104 regulations PDF