- 2 - After concessions,1 the issue to be decided is whether petitioners are entitled to exclude, pursuant to section 104(a)(2), amounts received in settlement of a class action suit. FINDINGS OF FACT Some of the facts have been stipulated for trial pursuant to Rule 91. The parties' stipulations of fact are incorporated herein by reference and are found as facts in the instant case. At the time they filed their petition in the instant case, petitioners resided in El Dorado Hills, California. On June 1, 1979, a class action lawsuit, Kraszewski v. State Farm Gen. Ins. Co., was filed against State Farm General Insurance Co., State Farm Mutual Automobile Insurance Co., State Farm Life Insurance Co., and State Farm Fire and Casualty Co. (State Farm) in the U.S. District Court for the Northern District of California.2 The class representatives alleged that State Farm had engaged in statewide discrimination in California in the recruiting, hiring, and training of women for sales agent trainee positions in violation of title VII of the Civil Rights Act of 1 In the notice of deficiency, respondent determined that, for taxable year 1991, petitioners were liable for self-employment tax in the amount of $5,381 and were entitled to a self- employment tax deduction in the amount of $2,690. Subsequently, the parties conceded that petitioners were not liable for the self-employment tax and that petitioners were not entitled to the self-employment tax deduction. 2 On Sept. 9, 1981, the District Court for the Northern District of California certified a class in Kraszewski to maintain the action. See Kraszewski v. State Farm Gen. Ins. Co., 27 Fair Empl. Prac. Cas. (BNA) 27 (N.D. Cal. 1981).Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011