Taxation of Verdicts - D.C.Circuit

Summary of Pennsylvania Decisions

Murphy v. Internal Revenue Service, No. 05-5139 (July 3, 2007)

Holding: A compensatory award that is expressly based upon non-physical injuries is not compensation “received...on account of personal physical injuries” excludable from gross income under §104(a)(2) of the Internal Revenue Code, 26 U.S.C., despite evidence that the Plaintiff suffered both physical and non-physical injuries.