Tax
Mar. 18, 2024
Do tax issues impact mediations?
Post-settlement disputes over taxes can occur, especially if the settlement agreement is silent or vague on tax reporting, withholding, or forms.
Robert W. Wood
Managing Partner, Wood LLP
333 Sacramento St
San Francisco , California 94111-3601
Phone: (415) 834-0113
Fax: (415) 789-4540
Email: wood@WoodLLP.com
Univ of Chicago Law School
Wood is a tax lawyer at Wood LLP, and often advises lawyers and litigants about tax issues.
Mediation is about resolving a dispute. The plaintiff wants as much as they can get, the defendant wants to pay as little as possible, and the mediator tries to work on both sides. Taxes may not come up until after a deal is reached, but if no one is thinking about taxes, should they be?
Some plaintiffs with tax concerns mention them early on, making it clear that any settlement must involve a particular tax treatment. But that may lead t...