The IRS has no shame
February 22, 2010 7:59am CST
A man was awared $600,000 for being wrongfully imprisoned. This type of settlement is supposed to be tax free as the money is awarded for pain and suffering. Well wouldn't you know that Uncle Sam has his hand out and wants to tax this poor man! They claim that the settlement counts as lost wages! I am never shocked by the depths that the government will sink to in order to cut down on the little guy. I'd love to say I don't believe it, but I'd be lying. How sad that after being thrown in jail for no reason, you can't even get your foot out the door before the government has their hand out. Rich people have more tax shelters than you can imagine, and they don't get taken like this.