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This case is before us on respondent's motion for summary
judgment under Rule 121.1 The issue for decision is whether
petitioners may exclude from gross income, under section
104(a)(2), amounts received from petitioner Allen L. Carey's
employer, International Business Machines Corp. (IBM), upon
termination of his employment, on the ground that such amounts
represented damages received on account of personal injury.
The disposition of a motion for summary judgment under Rule
121 is controlled by the following principles: (1) The moving
party must show the absence of a dispute as to any material fact
and that a decision may be rendered as a matter of law; (2) the
factual materials and the inferences to be drawn from them must
be viewed in the light most favorable to the party opposing the
motion; and (3) the party opposing the motion cannot rest upon
mere allegations or denials but must set forth specific facts
showing there is a genuine issue for trial. Rule 121; Brotman v.
Commissioner, 105 T.C. 141, 142 (1995).
Petitioners resided in Tampa, Florida, at the time they
filed their petition.
Petitioner Allen L. Carey (Mr. Carey) was employed by Skill
Dynamics, part of IBM, until his termination in 1993. He
received a lump-sum payment of $85,702.54 from IBM in June of
1 Unless otherwise indicated, all statutory references are to
the Internal Revenue Code in effect for the year in issue, and
all Rule references are to the Tax Court Rules of Practice and
Procedure.
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