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However, some defendants require confidentiality in order to include the nature and details of the dispute. Since court decisions are rarely confidential, it is unlikely that such broad language will be applicable. In general, confidentiality conditions should be as tight as possible. Are these premiums, to “stand still”, taxable? The answer under the identification number is yes. The consideration of confidentiality is taxable for the recipient. What if the agreement on the consideration paid for confidentiality was silent? One only has to look at a case involving Dennis Rodman and Eugene Amos to see how the financial court sees such a situation. “In the absence of `sufficient and clear consideration` in the agreement, the financial court was free to award any `fair or just amount,`” Burdge said. You worked for months to prepare your case for trial, and at the last preliminary conference, a settlement was finally reached, the trial was canceled, everyone was happy, and you went back to the office. During a National Basketball Association game in 1997, Rodman crashed into a television cameraman, Eugene Amos, while chasing a loose ball on the edge of the court. In the next anger, Rodman Amos struck. Amos filed a complaint and the case was settled with $200,000. The transaction agreement quoted the amount of the transaction and added a confidentiality and non-vaccination clause, without specifying the payment share of the clause.

The agreement also contained a lump sum compensation clause of $US 200,000 if Amos breached confidentiality. Given that this was the entire amount paid, it was obvious that confidentiality was essential for Rodman. Although payments made to pay for bodily injury are not taxable under the Internal Income Code, the money paid to pay the greatest number of duties is taxable. The IRS attempted to make the entire payment taxable and the financial court eventually ruled that US$80,000 was attributable to the confidentiality clause. . . .