New BNA Qualified Settlement Funds Portfolio Outlines Resolution Strategy and Tactics for Plaintiffs, Defendants for Disputed Claims

ARLINGTON, Va., July 12, 2011 /PRNewswire-USNewswire/ -- Due to the expansion of qualified settlement funds regulations, dispute resolution mechanisms have grown exponentially and a new BNA Tax and Accounting Portfolio, Qualified Settlement Funds and Section 468B, written by Robert Wood of Wood & Porter, considers all aspects of the QSF maintenance process and gives guidance through the complex policies.

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"This Portfolio provides all the tools needed to understand and work with QSFs; the in-depth explanation in the body of the Portfolio and the sample practice documents in the worksheets are an unbeatable combination," explains Michael Schinabeck, Editor, Federal Tax Law at BNA.

Section I of the Portfolio offers an overview of the primary objectives of a QSF from the different perspectives of the plaintiff and defendant. Section II follows with a forthright explanation of how to establish a QSF, including satisfaction of the approval requirement, the "resolve claims" requirement, and state law requirements. Moreover, Section II delves into the single claimant controversy and distinguishes the differences QSFs and DSFs will have in response. Section III discusses drafting trust agreements and details the responsibilities, as well as the benefits, of a trustee.

Section IV of the Portfolio outlines the administration of a QSF, focusing on the initial administrative duties and the administrative effects of transferring assets to the QSF. Section V, Defendant Transfers and Deductions, thoroughly explains the means necessary for defendants to obtain immediate deductions and the tax consequences of property transfers to the QSF. Section VI complements this with a probe into determining the QSF's income and deductions and offers alternative solutions to taxation methodology, such as the grantor trust election.

Section VII analyzes the distribution and structure of settlements. It outlines the differences in cash and property distributions, as well as structuring attorney fees. Section VIII explains tax filing, payment procedures, and penalties. Section IX accompanies such procedures with a look into tax reporting issues, namely reporting and withholding under various sections of the Internal Revenue Code.

A further look into the duties and powers of a trustee can be found in Section X, as well as an analysis of the different roles of the trustee and administrator. Section XI lays out the procedures for terminating a QSF, based upon the period of existence and a prompt assessment, followed by a court order confirming the termination of the QSF. Section XII concludes the Portfolio by explaining the similarities and differences of designated settlement funds and other non-QSF funds as compared to QSFs. Worksheets include sample petitions, orders, and agreements relating to the operation of a QSF.

Qualified Settlement Funds and Section 468B includes all materials and information necessary to make informed decisions on QSFs for both plaintiffs and defendants, as well as for those involved in the administration processes.

About the Author
Robert Wood, recipient of Florence James Adams Prize, scholar; University of Chicago Law School (1979); Member, bars of California, New York, Arizona, Montana, Wyoming, Texas, Washington, and the District of Columbia; Enrolled solicitor in England and Wales; Certified Specialist in Taxation, California Board of Legal Specialization; founder and editor-in-chief, The M&A Tax Report (CCH); Author, Taxation of Damage Awards and Settlement Payments (Tax Institute, Third Edition 2008, available at www.taxinstitute.com).

About BNA Tax & Accounting
BNA Tax & Accounting is the foremost source of news, analysis, and practice tools for tax attorneys, estate planners, accountants, and corporate tax and financial accounting professionals. For more than 50 years, BNA Tax & Accounting has offered practitioners expert insights and guidance on every significant issue in tax planning and financial accounting. Written by practitioners for practitioners, BNA's award-winning Portfolios offer topic-driven, in-depth guidance on transactions designed to help tax professionals achieve new levels of excellence and client service. For more information on BNA's U.S. Income Portfolios Library of which this Portfolio is a part, go to http://www.bna.com/US-Income-Portfolios-p7874/?open&cmpid=tmtxpr2011 or call 800.372.1033.

SOURCE BNA Tax & Accounting