PowerballSince everybody else is talking about it, I figure I might as well, too.

Powerball. It’s offering a record-breaking $1.5 billion payday if you (and you alone) win. (Of course, to get the $1.5 billion, you have to take it over 30 years; otherwise, you can choose a $930 million lump-sum payment.)

I don’t plan on talking about the futility of winning, or whether you should play. I’d rather talk about the taxes that the lucky winner will end up paying.  Continue reading

Exonerees, Complexity, and the Tax Law

Innocentproject.21In 2014, at least 125 convicts were exonerated, a significant uptick from previous years.

Two-thirds of exonerees receive some sort of compensation from the state as a result of their imprisonment. In fact, thirty states, the District of Columbia, and the federal government all have statutory compensation schemes for the exonerated. And even in those twenty states that do not have statutory compensation, an exoneree may be able to sue the state and recover. Continue reading