Ezel / IRS Rulings / 200932058

CCA 200932058: Jury verdict controls the character of compensatory damages

Number
200932058
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Gross Income v. Not Gross Income
Topics
Income and deductions
Code sections
§ 61, § 6110
Ruling dated
November 21, 2008
Publicly released
August 7, 2009
Source
View Official PDF

Apply this to your situation

This page covers legal advice the IRS Office of Chief Counsel wrote for IRS staff, issued in 2009, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Currency note: this determination was released in 2009
Statutory amendments, regulation changes, court decisions, or later IRS guidance may have changed the analysis since then. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, threshold, or position mentioned here.
Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It is advice from the IRS Office of Chief Counsel to IRS personnel on the facts they presented, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.
About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.
View official IRS release (PDF)

Plain-English summary

Chief Counsel advice addressed how to determine the character and purpose of a compensatory damage award. The advice states that the jury verdict controls that determination, even if the plan of distribution allocates the award differently. The document does not provide additional facts or a broader analysis.

Ruling snapshot

  • Question: What controls the character and purpose of a compensatory damage award when the distribution plan allocates it differently?
  • Outcome: Advice given
  • Key authorities: IRC § 61

Full text (IRS public release)

ID: CCA-112116-08 Number: 200932058
Release Date: 8/7/2009
Office: ----------------
UILC: 61.00-00

From: ---------------
Sent: Friday, November 21, 2008 4:28 pm
To: --------------------
Cc: ----------------------------
Subject: [----------------]

The jury verdict will delineate the character and purpose of the compensatory damage award regardless
of the allocation contained in the plan of distribution.

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