- 3 - misinformed, and discouraged in their efforts to obtain the entry level sales position." The court found State Farm liable with respect to "all female applicants and deterred applicants who, at any time since July 5, 1974, have been, are, or will be denied recruitment, selection and/or hire as trainee agents by defendant companies within the State of California." Mary Gillette was a member of the class action suit and prevailed in her claim. As a result, in 1992 State Farm issued petitioner and her attorney a $155,888 check. Petitioner's attorney retained legal fees of $31,226, and the balance was paid to petitioner. None of the $155,888 amount was reported or disclosed on petitioners' return. Respondent determined that the entire $155,888 should have been included in petitioners' gross income. Discussion This case requires the Court to revisit the taxability of the proceeds received by a claimant who was a member of the class of plaintiffs in Kraszewski v. State Farm Gen. Ins. Co. In each of our prior cases, we held that none of the proceeds were excludable from the taxpayer's gross income. See Hayes v. Commissioner, T.C. Memo. 1997-213; Hardin v. Commissioner, T.C. Memo. 1997-202; Raney v. Commissioner, T.C. Memo. 1997-200; Clark v. Commissioner, T.C. Memo. 1997-156; Berst v. Commissioner, T.C. Memo. 1997-137; Martinez v. Commissioner, T.C. Memo. 1997-126; Fredrickson v. Commissioner, T.C. Memo. 1997-125. Petitioner hasPage: Previous 1 2 3 4 Next
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