Litigation

"Cash Now" Stumpy's Whole Forest Full of BS

By John Darer

Greg A. Williams, a  wannabe cash now expert from Florida International University (FIU) on Ezine, claims to be "well read in Finance, Legal Topics, Technology, Education, Travel and Cooking" . Judging from these images we can tip our hats to his impressive Origami skills. Yet Greg A. Williams is unimpressive and flunks as an expert on "getting money for structured settlement".  Here's where "Stumpy" Williams' paper tree forest goes up in flames:
 Make sure the company that is offering the cash is well established. It is important that the payment purchasing company guides and manages the court order process for you. If you do not get a court order, you will be responsible to pay a 40% tax on the cash. The court order was added to the IRS law as a requirement to avoid paying tax on the injury settlement. Get started now! Fill out a form on this site to connect with settlement finance professional".

Structured Settlements 4Real Commentary

1. The operative words are "Internal Revenue Code IRC)  NOT "IRS Law".In the United States, the Congress passes tax laws and requires taxpayers to comply.The taxpayer?s role is to understand and meet his or her tax obligations.The IRS role is to help the large majority of compliant taxpayers with the tax law, while ensuring that the minority who are unwilling to comply  pay their fair share.Source: Internal Revenue Service (IRS).
2. Pursuant to IRC 5891, a 40% excise tax is applied on the factoring discount in the event that the conditions of IRC 5891 are not satisfied by the purchaser of the structured settlement payment rights.
3. As to the tort victim, provided a minor or incompetent is not involved the settlement payments are excludible from gross income under IRC 104(a)(1) or  104(a)(2) ( i.e. representing workers compensation or damages on the account of personal physical injury or physical sickness the settlment payments) and there is no need for Court Order "to avoid paying income tax from an injury settlement".

Greggo, perhaps you aren't as "well read on Finance and Legal Topics" as you thought.

Full post as published by Structured Settlements 4Real on December 19, 2008 (boomark / email).