|Tax Experts Praise Murphy Decision as “Momentous” and “Epochal”|
In a recent court victory, whistleblower Marrita Murphy successfully challenged the constitutionality of taxing compensatory damages in civil rights/whistleblower cases.
In August 2006, a unanimous panel of the U.S. Court of Appeals for the
District of Columbia Circuit ruled in favor of Ms. Murphy and declared
unconstitutional a special tax Congress had passed in 1996, which
targeted civil rights victims who received compensation for emotional
distress damages. That decision, Murphy v. United States,
has now been hailed by a leading tax expert as a “momentous” and
“epochal” decision. Mr. Robert Wood, the author of the leading books
on taxation of damage claims, set forth ten major benefits all
wrongfully discharged whistleblowers obtained from the decision,
including facilitating settlement of cases, permitting victims of civil
rights violations to obtain tax refunds and ensuring that all Americans
who suffer retaliation can be made fully whole.