Statutory Guidelines [Appendix A(3) IRC 130] regarding certain personal injury liability assignments.
Utah Certain Personal Injury Liability Assignments (IRS Code 130) refer to a specific provision in the Internal Revenue Service (IRS) tax code that allows the assignment of certain personal injury liability claims for tax purposes. This provision is applicable in Utah, which has its own set of rules governing personal injury liability assignments. Under IRS Code 130, individuals who receive damages or payments from personal injury lawsuits, such as settlements or judgments, have the option to assign these future payments to a third party, typically an entity specializing in structured settlements, in exchange for a lump sum payment. The assignee then assumes the right to receive the future payments, while the assignor receives immediate funds. In Utah, like in other states, there are several types of personal injury liability assignments that fall under IRS Code 130: 1. Structured Settlement Assignments: This type of assignment allows individuals to assign the periodic payment obligations of their personal injury settlements or judgments to a qualified assignee. The assignee then becomes responsible for collecting and disbursing these future payments. 2. Worker's Compensation Assignments: In cases where an individual receives worker's compensation benefits due to a personal injury suffered on the job, they may have the option to assign these benefits to a qualified assignee under Utah's Certain Personal Injury Liability Assignments provisions. 3. Personal Injury Trust Assignments: Individuals who have established personal injury trusts as part of their settlement planning can assign the future payments from these trusts in accordance with IRS Code 130. These assignments can ensure a more favorable tax treatment for the assignor. It is important to consult with a qualified tax advisor or attorney to properly understand and navigate the intricacies of Utah's Certain Personal Injury Liability Assignments and ensure compliance with IRS regulations. Additionally, individuals should consider their specific circumstances and financial goals before entering into any assignment agreement, as there may be consequences and limitations associated with the assignment process.
