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Structured settlement
A structured settlement is a financial or insurance arrangement, including periodic payments, that a claimant accepts to resolve a personal injury tort claim or to compromise a statutory periodic payment obligation. Structured settlements were first utilized in Canada and the United States during the 1970s as an alternative to lump sum settlements.
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Section 72(q)(2)
This notice concludes that taxpayers may use the methodology set forth in Rev. Rul. 2002-62 to determine whether a distribution from an annuity contract is part of a series of substantially equal periodic payments under section 72(q)(2).
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