IRS Defends Tax Court's Deduction In Arrest Injury Settlement

By Asha Glover · July 10, 2026, 4:57 PM EDT

The U.S. Tax Court correctly ruled that part of a man's $35,000 settlement payment from a Massachusetts town is deductible as damages paid for physical injuries, the IRS told the D.C....

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Case Information

Case Title

Joseph Zajac, III v. Cmsnr. IRS

Case Number

25-1225

Court

Appellate - DC Circuit

Nature of Suit

United States Tax Court 

Date Filed

October 24, 2025