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The rule announced by the Supreme Court in United States v.
Burke, supra, must, therefore, be given full retroactive effect
to any open cases. Accordingly, the $137,918.96 of backpay
petitioner received as partial settlement of the Title VII claim
is taxable income for 1990.
Issue 3. Withholding Credits
Respondent determined that petitioner is not entitled to
additional withholding credits of $47,277 for 1991. Petitioner
asserts that he is entitled to an overpayment based on his claim
to such withholding credits.
This adjustment originates from an information item reported
to the IRS. Specifically, the IRS received information that a
Form W-2 was issued to petitioner by the District Court
reflecting an additional $81,669 of income and withholding
credits of $47,277 in further satisfaction of his Title VII
claim. Upon further review, it was discovered that the Form W-2
was not issued by the District Court and was not a bona fide
document. Respondent concedes that petitioner did not receive
the additional $81,669. Furthermore, the District Court did not
remit $47,277 to the IRS on behalf of petitioner.
For purposes of additional income, petitioner accepts that
the District Court did not issue the Form W-2 and that he did not
receive the $81,669. Notwithstanding this, petitioner asserts
that he is still entitled to the $47,277 of withholding credits
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