Plaintiff, a highly-paid senior associate at a law firm, brought two claims against her former employer. The first claim alleges that, after she rebuffed her former employer's advances, she turned to leave and her former employer shoved her in the back, causing her to trip, fall, and chip one of her teeth. Repairing the tooth required several visits to the dentist. No surgery or hospitalization was required. Plaintiff did not miss any work for this injury. Plaintiff's second claim alleges that her former employer had sexually harassed her. This conduct upset Plaintiff so greatly that some days she missed work. She also developed insomnia and anxiety, which then lead to migraines and a stomach ulcer. Ultimately, Plaintiff resigned because she could not bear the harassment. She was out of work for several months before she could find other employment. Plaintiff and her former employer have come to a settlement of $500,000.

As Plaintiff's attorney, how would you want to attribute this settlement between her claims and the various remedies she could seek for each claim so as to limit Plaintiff's taxes?

Do you think that that distribution would withstand review by the IRS? Why or why not?