The Clark Oil aftermath/fallout...

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BIResident

United States

#1 Mar 14, 2012
To most if not all of you who filed to get settlement money from the Clark Oil lawsuit situation and got your money last year...did you also pay the IRS the taxes that must be payed on your little settlement? I know some of who completely forgot and NOW have been reminded of it. Some of you were not ready to do so were you? Because you have spent it all? Somebody should have told you or whispered in your year that Uncle Sam was going to be looking for their piece of your pie this time of the year.
Looks like there is going to be a lot of Yard and Garage sales this Spring and Summer to make that money for the IRS.
BI resident

Wayne, IL

#2 Mar 14, 2012
BIResident wrote:
To most if not all of you who filed to get settlement money from the Clark Oil lawsuit situation and got your money last year...did you also pay the IRS the taxes that must be payed on your little settlement? I know some of who completely forgot and NOW have been reminded of it. Some of you were not ready to do so were you? Because you have spent it all? Somebody should have told you or whispered in your year that Uncle Sam was going to be looking for their piece of your pie this time of the year.
Looks like there is going to be a lot of Yard and Garage sales this Spring and Summer to make that money for the IRS.
Everyone got the tax form WITH the check, so I assume everyone KNEW that they were going to pay taxes on it. If not - they are idiots.
say goodnight gracie

Alsip, IL

#3 Apr 1, 2012
Completely agree; anyone who didn't pay taxes on that money is truly foolish! No sympathy whatsoever.
think

Chicago, IL

#4 Apr 1, 2012
Why is it that whenever you get monies from any other lawsuit you do not have to claim it but with this clark oil you do.
Donald Dump

Orland Park, IL

#5 Apr 1, 2012
If you had home rule it would not have been taxed!
say goodnight gracie

Alsip, IL

#6 Apr 1, 2012
think wrote:
Why is it that whenever you get monies from any other lawsuit you do not have to claim it but with this clark oil you do.
Simplest answer: the 1099-MISC form that came WITH the check.
say goodnight gracie

Alsip, IL

#7 Apr 1, 2012
Donald Dump wrote:
If you had home rule it would not have been taxed!
If we had home rule, the high property taxes would bankrupt us all...stop spreading lies, you stupid Peloquin-bot.
ItsOnlyMoney

Wilmette, IL

#8 Apr 2, 2012
Punitive damages are generally considered income and taxable as such, but there are some complications.

Remember: There is NO SUCH THING as "free money".
TaxGuy

Bedford, IN

#9 Apr 5, 2012
There may not be taxes on this settlement. Based on IRS Publication 525, since this a payment for property damage and if your payemtns does not exceed your basis in the property, the amount is not taxable. Further, payments for physical illness are not taxable.

Unless someone disagrees, this settlement was for property damage and physical illness.
say goodnight gracie

Chicago, IL

#10 Apr 5, 2012
TaxGuy wrote:
There may not be taxes on this settlement. Based on IRS Publication 525, since this a payment for property damage and if your payemtns does not exceed your basis in the property, the amount is not taxable. Further, payments for physical illness are not taxable.
Unless someone disagrees, this settlement was for property damage and physical illness.
TaxGuy, your advice is ill-informed and frankly wrong. This settlement was in no way related to physical illness incurred as a result of Clark's proximity to Blue Island; it is a nuisance lawsuit based solely on property damage. Furthermore, a 1099-MISC form was included with every check sent to the claimants; only if such settlements are under $600 can they go unclaimed on state and federal taxes.
Shtinky

Frankfort, IL

#11 Apr 5, 2012
I thought they might build another plant to churn out some of those old fumes to cover the stench that is now Blue Island. It looks and smells like used toilet paper.
TaxGuy

Bedford, IN

#13 Apr 6, 2012
say goodnight gracie - It is amazing the lack of common sense on these posts starting with you. What tax experience do you have? I have 20 years.

The lawsuit was for both property damage and physical illness so I assumed the settlement was for both. Even if the settlement was for property damage only, IRS Pulication 525 relates to this situation. The settlement is not taxable unless the amount received exceeds your basis in the property.

My client is an individual who received a settlement and based on my tax experience and a tax lawyer's advice, this is not taxable. Just because you receive a 1099 means nothing. The $600 cut-off you stated is only if they need to give you a 1099 and not if it is taxable.

Damages from the Gulf Oil spill and subsequent property settlements were not taxable (see separate IRS publication). Please only talk when you know what you are talking about!
vote

Tinley Park, IL

#14 Apr 6, 2012
Metrosouth
say goodnight gracie

Chicago, IL

#15 Apr 6, 2012
TaxGuy wrote:
say goodnight gracie - It is amazing the lack of common sense on these posts starting with you. What tax experience do you have? I have 20 years.
The lawsuit was for both property damage and physical illness so I assumed the settlement was for both. Even if the settlement was for property damage only, IRS Pulication 525 relates to this situation. The settlement is not taxable unless the amount received exceeds your basis in the property.
My client is an individual who received a settlement and based on my tax experience and a tax lawyer's advice, this is not taxable. Just because you receive a 1099 means nothing. The $600 cut-off you stated is only if they need to give you a 1099 and not if it is taxable.
Damages from the Gulf Oil spill and subsequent property settlements were not taxable (see separate IRS publication). Please only talk when you know what you are talking about!
Hooooooooo boy, your client's in for a nice ol' audit (not to mention accumulated back taxes and penalties) if you advised him not to declare that settlement on his taxes, considering I and MANY fellow Blue Islanders were all told otherwise by various, seasoned tax professionals who actually KNOW about the circumstances surrounding the settlement
Tax Advisor as well

Chicago, IL

#16 Jun 3, 2012
TaxGuy wrote:
say goodnight gracie - It is amazing the lack of common sense on these posts starting with you. What tax experience do you have? I have 20 years.
The lawsuit was for both property damage and physical illness so I assumed the settlement was for both. Even if the settlement was for property damage only, IRS Pulication 525 relates to this situation. The settlement is not taxable unless the amount received exceeds your basis in the property.
My client is an individual who received a settlement and based on my tax experience and a tax lawyer's advice, this is not taxable. Just because you receive a 1099 means nothing. The $600 cut-off you stated is only if they need to give you a 1099 and not if it is taxable.
Damages from the Gulf Oil spill and subsequent property settlements were not taxable (see separate IRS publication). Please only talk when you know what you are talking about!
You should of read the Lawsuit, it does not mention property damage or physical illness, I Quote "Clark caused a nuisance through its operation of its Blue Island refinery that interferred with the use and enjoyment of the Class C members' real property within the Class Area". There was a good reason that they sent 1099's with the checks and also sent copies to the IRS. The IRS will be looking for these 1099's to be reported on everyone's 1040's. Your clients will be receiving notices and you should advise them to amend their 1040's to reflect the income from the lawsuit before they end up with any more interest and penalties. Furthermore, additional checks were sent out this past week for money that was held in reserve. Since we are in a new tax year, unless the check is more than 600.00 no 1099 will be issued for these final payments. Maybe you should stop talking and do more reasearch for you clients.
The Time Has Come

Manhattan, IL

#17 Mar 23, 2013
Tax Advisor as well wrote:
<quoted text>
You should of read the Lawsuit, it does not mention property damage or physical illness, I Quote "Clark caused a nuisance through its operation of its Blue Island refinery that interferred with the use and enjoyment of the Class C members' real property within the Class Area". There was a good reason that they sent 1099's with the checks and also sent copies to the IRS. The IRS will be looking for these 1099's to be reported on everyone's 1040's. Your clients will be receiving notices and you should advise them to amend their 1040's to reflect the income from the lawsuit before they end up with any more interest and penalties. Furthermore, additional checks were sent out this past week for money that was held in reserve. Since we are in a new tax year, unless the check is more than 600.00 no 1099 will be issued for these final payments. Maybe you should stop talking and do more reasearch for you clients.
It is my understanding that the IRS has started to send out letters to anyone who did not claim the Clark Law Suite PUNITIVE DAMAGES payments on their 2012 Federal and State tax returns.
BILib

Park Forest, IL

#18 Mar 23, 2013
I have also heard this. Thankfully my tax guy made sure the settlement was included in my tax filing last year. What people forget is that there were TWO suits. The general nuisance one and a separate suit for actual physical harm that was settled earlier. It was a bit confusing but inclusion of the 1099 form should have been pretty good evidence the IRS would be expecting their share. I know a couple people who swore their accountants said they didn't have to file for the settlements. I wonder if those professionals will pay the owed taxes and penalties.
The Time Is Now

Manhattan, IL

#19 Mar 23, 2013
BILib wrote:
I have also heard this. Thankfully my tax guy made sure the settlement was included in my tax filing last year. What people forget is that there were TWO suits. The general nuisance one and a separate suit for actual physical harm that was settled earlier. It was a bit confusing but inclusion of the 1099 form should have been pretty good evidence the IRS would be expecting their share. I know a couple people who swore their accountants said they didn't have to file for the settlements. I wonder if those professionals will pay the owed taxes and penalties.
I know, I tried informing people last year. Professionals who earn a decent income who lived close to the site are owing as much as $6,500 with taxes, penalties and interest. A good Tax Advisor will cover at least the penalties and interest.

Since: Sep 14

Monee, IL

#20 Sep 2, 2014
Recently the Blue Island Paper came out with and article that these settlements should not have been taxed. The article stated that the settlement was for compensatory damages only.(I know that it doesn't "not taxable" all the time. Anyone doing amended with success? I had one person tell me that people are already getting refunds on their amended returns.
Prevention

Chicago, IL

#21 Sep 2, 2014
Good leadership would ensure blowing IEPA Violations would not occur without strict oversight, monitoring, fines and penalties. These few pennies will hopefully not be required for current and future medical bills.

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