Tax Court Finds That Silent Settlement Agreement Means Big Tax Bill

Litigation is time-consuming and expensive. It is therefore no surprise that most litigation concludes, not by trial, but rather through the parties agreeing to settle their differences through execution of a settlement agreement.

Each settlement agreement is different. In most instances, however, a standard agreement will address payment by one party to another party in exchange for a release of liability. It is up to the parties how they want to structure the settlement and what language they elect to use to memorialize the terms.