Are out of court suit settlement taxable to a corporationtaxable by the irs?.?

Question

to correct above? Are out of court suit settlement received by a corporation taxable by the irs?

Answer 1

In general only settlements for physical injury or illness are not taxed. Physical injury or illness would obviously not apply to a corporation, only to a natural person.

Additionally, settlements that make you (the corporation in this case) whole again are not taxed to the extent that the proceeds are used to return yourself to the pre-claim position. Any amounts beyond the actual damages would be fully taxable.

Answer 2

It depends on what it was for.

So...maybe.