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* * * * * * *
13. * * * The approximate full value of
* * * [petitioner's] claim under the Consent
Decree damage formula as of February 1, 1992,
is $499,912.00, which represents back pay as a
State Farm agent accrued from the year of the
challenged appointment to February 1, 1992,
plus six months of front pay from that date
forward.
b. Settlement Cash at 87.5%
Acceptance Rate: State Farm offers * * *
[petitioner] Settlement Cash of $186,677.00,
which is approximately 37% of the estimated
full Consent Decree value of her claim, to
release her claims against State Farm. * * *
* * * * * * *
c. Incentive Cash for Acceptance
Rate Above 90%: The Incentive Cash will be
$1,800.00 per claimant for each full percentage
point by which the Acceptance Rate * * *
exceeds 90%. * * *
* * * * * * *
e. Attorney's Fees: The payments
State Farm is offering to * * * [petitioner]
include her attorneys' fees and costs * * *.
That is, * * * [petitioner] will have to pay
her attorneys' fees * * * out of the payment
State Farm makes to her. * * *
In 1992, pursuant to the terms of the settlement, State Farm issued
petitioner and her attorney a check in the amount of $202,877.
Petitioner's attorney retained legal fees of $40,620.
Petitioner did not report the State Farm payment on her 1992
Federal income tax return. Respondent determined in the notice of
deficiency that the entire State Farm payment should have been
included in petitioner's gross income and that petitioner is
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