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lump sums or as periodic payments) on account of personal
injuries or sickness". "The term 'damages received (whether by
suit or agreement)' means an amount received (other than
workmen's compensation) through prosecution of a legal suit or
action based upon tort or tort type rights, or through a
settlement agreement entered into in lieu of such prosecution."
Sec. 1.104-1(c), Income Tax Regs. There are two separate
requirements that petitioner must satisfy under section
104(a)(2): (1) "the underlying cause of action giving rise to
the recovery is 'based upon tort or tort type rights'" and (2)
"the damages were received 'on account of personal injuries or
sickness.'" Commissioner v. Schleier, supra at 337.
For purposes here, we are willing to assume that under the
applicable Oklahoma law, petitioner may have had some claim
against United in the nature of a tort or tort type cause of
action. See Barnes v. Commissioner, T.C. Memo. 1997-25. The
more difficult question, however, is whether the $11,100 was
received on account of a tort or tort type cause of action. The
question is for what was the amount paid. Bagley v.
Commissioner, 105 T.C. 396, 406 (1995), affd. 121 F.3d 393 (8th
Cir. 1997). We are primarily concerned with United's intent in
making the payment. Knuckles v. Commissioner, 349 F.2d 610, 613
(10th Cir. 1965), affg. T.C. Memo. 1964-33. While there was not
a comprehensive settlement agreement, the agreement reflected in
the correspondence between petitioner and United indicated that
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