Guidance – Proposed Reg Exclusion From Gross Income Amounts Received on Account of Personal Physical Injuries
REG-127270-06 contains proposed regulations relating to the exclusion from gross income for amounts received on account of personal physical injuries or physical sickness. The proposed regulations reflect amendments under the Small Business Job Protection Act of 1996. The proposed regulations also delete the requirement that to qualify for exclusion from gross income, damages received from a legal suit, action, or settlement agreement must be based upon “tort or tort type rights.” The proposed regulations affect taxpayers receiving damages on account of personal physical injuries or physical sickness and taxpayers paying these damages.
Guidance – Late Classification Elections Rev Proc 2009-41
Revenue Procedure 2009-41 provides guidance with regard to eligible entities seeking relief to file late classification elections. Generally, the revenue procedure provides late relief if the request is filed within 3 years and 75 days of the requested effective date of the eligible entity’s classification. The revenue procedure also provides guidance for those eligible entities that do not qualify for relief under this revenue procedure.
Revenue Procedure 2009-41 will be in IRB 2009-39, dated September 28, 2009.
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