- 5 -
reflects a gross recovery from Dupont and Universal in the amount
of $2,800,000.
Petitioner did not include the payment that he received from
Dupont and Universal in his taxable income for 1994. On
September 18, 1996, respondent issued a notice of deficiency to
petitioner determining deficiencies in and additions to his
Federal income taxes for 1992 and 1994. The most significant
adjustment is respondent's determination that petitioner failed
to report income in the amount of $1,623,2034 for 1994
representing the net amount that petitioner received from Dupont
and Universal.
Petitioner filed a timely petition for redetermination with
the Court contesting the above-described notice of deficiency.
As previously discussed, petitioner contends that he is entitled
to partial summary judgment that the amount he received from
Dupont and Universal in 1994 is excludable from his income
pursuant to section 104(a)(2). Respondent objects to
petitioner's motion on the ground that material facts remain in
dispute.
4 The notice of deficiency does not provide an explanation
as to how this amount was computed. The distribution schedule
reflects a gross recovery of $2,800,000, less attorney's fees and
distributions to third parties. We are unable, however, to
reconcile respondent's adjustment with the amounts set forth in
the distribution schedule, nor are we required to do so for
purposes of this opinion.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011