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injuries or sickness". "The term 'damages received (whether by
suit or agreement)' means an amount received (other than
workmen's compensation) through prosecution of a legal suit or
action based upon tort or tort type rights, or through a
settlement agreement entered into in lieu of such prosecution."
Sec. 1.104-1(c), Income Tax Regs. Thus, the exclusion must
derive from some sort of tort claim against the payor. Rickel v.
Commissioner, 900 F.2d 655, 658 (3d Cir. 1990), affg. in part and
revg. in part on other grounds 92 T.C. 510 (1989).
The Federal Employees' Compensation Act provides
compensation to Federal employees for work-related injuries. 5
U.S.C. secs. 8101-8151 (1994). The liability of the United
States or any instrumentality thereof, in or under any judicial
proceeding, civil action, workmen's compensation statute, or
Federal tort liability statute, is expressly limited to the
relief provided in the Federal Employees' Compensation Act. 5
U.S.C. sec. 8116(c). Petitioner, however, received her
disability annuity under 5 U.S.C. secs. 8451-8456 (1994). Since
the exclusive legal remedy for redress of petitioner's tort
claims against the Federal Government resulting from on the job
injuries is contained in the Federal Employees' Compensation Act,
it is axiomatic that petitioner's disability annuity, received
under a different set of statutes, must have been received for a
different purpose. See Flaherty v. Commissioner, T.C. Memo.
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