Capitol Beat
Thursday, March 21st, 2002 Legislation & Regulation Liability Litigation PropertyBoth houses of Congress have passed the federal tax relief package for victims of the Sept. 11 attacks. Included in HR 2884 was protection for recipients of structured settlements, requiring court oversight and approval for injury victims who choose to sell payments from a structured settlement to a third-party for a cash sum, a practice known as factoring. The legislation is a landmark, according to Andrew J. Larsen, president of the National Structured Settlements Trade Association. “Virtually every major organization that advocates on behalf of Americans with disabilities urged Congress to pass this measure,” said Larsen. The new legislation provides for a substantial federal excise tax on any company trying to purchase future payments from injury victims, unless a state court first approves the transaction as being in the best interests of the victim.
