Government Owes Postal Worker for Taxes on Job Bias Settlement

A former U.S. Postal Service employee is entitled to $33,691 to cover the adverse tax consequences of a 2003 discrimination settlement she reached with the government, the Federal Circuit ruled April 17.

That amount just covers the additional taxes Gladys VanDesande was required to pay in 2004 as a result of a lump sum paid to her under the settlement, the court said. It rejected VanDesande’s argument that the government actually agreed to pay her entire tax liability.

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