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Assignment of Income

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Assignment of Income
The splitting of a person or company's income to another person or company so that the first person or company pays less in taxes. The United States Supreme Court has disallowed assignment of income under most circumstances.


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Because the regulation refers to the assignment of income, instead of relying upon the court order, a custodial parent may prefer to irrevocably assign his or her right to the child support payment stream to a self-settled trust.
Banaitis distorts foundational principles, known as assignment of income law, which help identify the person who must report income for federal tax purposes.
1) The Court of Appeals for the Sixth Circuit concluded that the contingent fee agreement was not an anticipatory assignment of income because the litigation recovery was not already earned, vested, or even relatively certain to be paid when the contingent fee contract was entered.
 
 
 
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