Robert W. Wood (Wood & Porter, San Francisco) has published Tax-Free Wrongful Imprisonment Recoveries,130 Tax Notes 961 (Feb. 21, 2011):

Although wrongful incarceration and similar recoveries are becoming common and can proceed under several different legal theories, their tax treatment has received relatively little attention. In ILM 201045023, the IRS treated a recovery as excludable from income based on personal physical injuries, prompting many in the popular press to suggest that the tax issues surrounding those recoveries are resolved

All Tax Analysts content is available through the LexisNexis® services. Prior TaxProf Blog coverage:

• Why Do We Tax Recoveries by Prisoners Freed From Wrongful Imprisonment? (Oct. 28, 2010):
• IRS’s Wrongful Imprisonment Ruling Stirs Controversy (Nov. 18, 2010)