What should I do if the defendant’s lawyer is asking for my social security number?

I have reached an agreement with the defendant’s lawyer and in the settlement letter asking for agreement it asks for my SSN. Is this to confirm that I did not accept any monies from the insurance company for diminution in value?

Asked on March 15, 2016 under Accident Law, Texas

Answers:

B.H.F., Member, Texas State Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

The attorney is asking for your social for tax purposes.  Depending on how the settlement is structured, part of it could be considered income for which you would have to report to the IRA and pay taxes on.  Before you finalize any agreements, have an attorney and accountant look it over.  Many attorneys and accountants offer free or inexpensive consults.  If they give you tips on how to structure the deal... it would be a significant cost savings at tax time.... and therefore worth your time and investment.


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