Identify the related tax issues in this case and formulate specific research questions regarding them:

Alice sued Bigco, her employer, for sexual harassment, alleging that her boss made unwanted advances, suggested that her prospects with Bigco depended on giving in to his demands, and that on at least two occasions he slapped her hard enough to leave bruises for which she sought medical treatment (medical records document the bruises but not the cause). She further alleges that she lost a significant promotion the year before the suit was filed because of a bad recommendation from her boss. She also sued for substantial punitive damages. Bigcos employment lawyers and Alices lawyer have reached a tentative $300,000 settlement that allocates $150,000 for back pay from the lost promotion and $150,000 for release of all harassment, physical injury and other claims Alice has against Bigco. Alices lawyer has a 40% contingent fee agreement.