- 3 - distress manifested itself in the appearance of precancerous tumors which are being monitored by her doctor. On November 26, 1990, petitioner filed a wrongful termination action against NLCA alleging the following: 5. As a result of [the] fact that [petitioner] was about to testify against [NLCA] and as a result of [petitioner's] refusal to continue to engage in illegal, unethical and/or improper business practices [NLCA] terminated [petitioner] on March 30, 1990 in contravention of the public policy of the State of Oklahoma and the United States. 6. [Petitioner] further alleges that [NLCA]'s actions were intentional, wilful and malicious. [Petitioner] is entitled to punitive damages. 7. [Petitioner] alleges that as a direct result of her termination she has sustained damages for past and future lost wages as well as mental distress. The petition in the wrongful termination action did not allocate any specific dollar amounts to the alleged damages but rather generally prayed for a judgment "in excess of $10,000.00, together with interest, costs and such other relief as the Court deems just and proper." Petitioner's claim was settled on February 3, 1992, pursuant to a General Release and Settlement Agreement signed by petitioner and her attorney in that dispute. Pursuant to this agreement, NLCA paid petitioner $27,000 by check in exchange for her release of all claims. NLCA did not withhold any taxes from this amount. Petitioner received a Form 1099-MISC from NLCA showing a prize or award in the amount of $27,000. On her 1992 Federal income tax return, petitioner excluded this amount fromPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011