We also make it clear that when a judgment or settlement includes an admission that damages are on account of sexual abuse, then that written agreement should be sufficient evidence to benefit from the tax exemption. If the IRS has reason to doubt the legitimacy of the facts underlying the agreement, then they can challenge it. But the presumption must be that the admission is valid. Of course, sometimes settlements aren't explicit that they are on account of sexual abuse. (02:33–02:42)
CLAIM
Asserts that the IRS can challenge the legitimacy of settlement agreements if there is doubt.
This is an excerpt from a raw transcript. The assertions have not been audited or verified. Tap the video to view the source footage and understand the context.
