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Expert Analysis

When A Settlement Agreement Is Silent About Tax

Law360, New York (September 3, 2015, 12:54 PM EDT) -- What happens when settling parties agree that the defendant will pay a specific sum to the plaintiff, and the defendant discovers later that withholding of taxes is required? Does the defendant withhold and pay the net amount to the plaintiff, or is the defendant required to gross up the payment, such that the plaintiff receives the agreed-upon amount net of taxes?...

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