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injury. Severance pay, just like the pay it replaces, is taxable
income.
Finally, we note that petitioner has not alleged or come
forward with any evidence of the specific amounts of the payments
allocable to claims of tort or tort-type damages for personal
injuries. The release makes no allocation, and petitioner has
not set forth any facts upon which he would rely to prove an
allocation. Indeed, the fact that the $94,174 was based on
petitioner's years of service points in the direction of its
having been severance pay rather than a payment for personal
injury. See Webb v. Commissioner, supra, which involved the same
payor and substantially the same plan as involved herein.
In sum, we conclude that there is no material issue of fact
which requires a trial. Accordingly, we hold that respondent's
motion for summary judgment will be granted and petitioners'
motion for summary judgment will be denied.
To reflect the foregoing,
An appropriate order and decision
will be entered granting respondent's
motion for summary judgment and denying
petitioners' motion for summary
judgment.
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Last modified: May 25, 2011