Thursday, December 15, 2011
From our sister Sentencing Law & Policy Blog, DC Jury Awards $2.3 Million to Man Imprisoned a Decade After Wrongful Parole Revocation:
As reported in this post at The BLT, a federal jury "awarded a Washington man $2.3 million in damages on Monday for the 10 years he spent in prison after his parole was wrongfully revoked." ...
One follow-up question (which I will pose to Paul Caron at TaxProf): Does Singletary now get to enjoy this $2.3 million award free from all federal and local taxes? I believe that there has been some new rules and litigation of late concerning what parts of a compensatory tort award are still tax-free, and this case and the general damages verdict rended by the jury here could present an interesting set of issues concerning the nature of the harm(s) Singletary suffered from his wrongful imprisonment.
As the following TaxProf Blog posts make clear, the issue turns on whether the $2.3 million damage recovery was received on account of "personal physical injuries":