Revenue Procedure 93-34
What this document covers
The Revenue Procedure 93-34 outlines the rules under which a designated settlement fund or a qualified settlement fund can be considered a "party to the suit or agreement" under section 130 of the Internal Revenue Code. This protocol is pertinent for those dealing with periodic payments related to personal injury or sickness claims, distinguishing these funds from other financial instruments in legal agreements.
Form components explained
- The purpose of designating funds as parties to an agreement.
- Definitions of qualified and designated settlement funds.
- Eligibility requirements for funds to be considered parties to the suit.
- Exclusions and conditions related to personal injury claims.
- Effective date for these rules and their applicability.
Common use cases
This form is typically used when a designated or qualified settlement fund accepts the responsibility to make periodic payments related to personal injury claims. It is essential in legal cases involving settlements where ongoing payments are necessary, ensuring that both the claimant and the assignor meet IRS requirements for tax exclusions.
Who needs this form
- Individuals or entities involved in litigation or settlements involving personal injury claims.
- Assignors wishing to transfer liabilities for making periodic payments to a qualified settlement fund.
- Lawyers and legal professionals facilitating settlements for clients.
How to prepare this document
- Confirm that the claimant agrees in writing to the assignment from the fund.
- Ensure the claim pertains to personal injury or sickness in line with section 130.
- Identify the qualified funding assets related to the liability for periodic payments.
- Verify that the assignee is unrelated to the transferor as per IRS regulations.
- Document all necessary terms and conditions to satisfy section 130.
Is notarization required?
Notarization is not commonly needed for this form. However, certain documents or local rules may make it necessary. Our notarization service, powered by Notarize, allows you to finalize it securely online anytime, day or night.
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Make edits, fill in missing information, and update formatting in US Legal Forms—just like you would in MS Word.
Download a copy, print it, send it by email, or mail it via USPS—whatever works best for your next step.
Sign and collect signatures with our SignNow integration. Send to multiple recipients, set reminders, and more. Go Premium to unlock E-Sign.
If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
We protect your documents and personal data by following strict security and privacy standards.
Common mistakes to avoid
- Failing to document the claimant's agreement to the assignment.
- Not verifying the assignee's relationship to the transferor.
- Overlooking specific state laws that may affect the use of qualified settlement funds.
Why complete this form online
- Convenience of instant access to legal templates crafted by licensed attorneys.
- Editability allows customization to fit specific legal requirements.
- Reliable source ensuring compliance with current legal standards.
