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December 15, 1975, and May 31, 1976, and on January 1, 1977, when
the promotion of James M. Mitchell, which petitioner challenged,
took place. The liability stage of the Kraszewski class action
litigation was decided in 1985 and the relief stage in 1986. The
Court of Appeals for the Ninth Circuit affirmed the District
Court's decisions in Kraszewski in 1990. All these events
predated the effective date of the 1991 amendments.
For the foregoing reasons, we hold that petitioner is not
entitled to exclude from gross income the settlement proceeds
received from State Farm in 1992. Accordingly, respondent's
determination is sustained.11
We have considered petitioner's remaining arguments and, to
the extent not discussed herein, find them to be irrelevant or
without merit.
Decision will be entered
under Rule 155.
11We note that our opinion herein is consistent with three
prior decisions of this Court, which similarly held that
settlement proceeds received pursuant to the Kraszewski
litigation were not excludable from gross income under sec.
104(a)(2). See Berst v. Commissioner, T.C. Memo. 1997-137;
Martinez v. Commissioner, T.C. Memo. 1997-126; Fredrickson v.
Commissioner, T.C. Memo. 1997-125.
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