IRS on income tax and the wrongly convicted

POSTED: Wednesday, November 17, 2010 - 2:25pm
UPDATED: Friday, April 13, 2012 - 8:53am

The Internal Revenue Service has been collecting an income tax on compensation given to people who are wrongly convicted. The IRS bases the tax amount for this compensation on the former inmate's tax bracket.

However, IRS officials have recently said they will reevaluate this law.

In order to receive the compensation, those proven innocent, must reveal personal injury that resulted from long term incarceration.

No further information has been released on when this will be reviewed, or what changes will be made.

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