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The mediation summary does not address the tort type claims
raised by petitioner in his complaint, and does not discuss any
personal injury suffered by petitioner. The mediation panel,
upon evaluation of each party's respective position, decided that
United should pay petitioner $20,000 in damages. On March 15,
1990, petitioner and United agreed to accept the mediation
panel's evaluation, and entered a stipulation and order for
dismissal. Petitioner signed a settlement statement on April 6,
1990, acknowledging his receipt of the settlement proceeds (less
attorney's fees and expenses). The statement of settlement does
not identify or place a value on the specified claims of
petitioner.
OPINION
As a general rule, the Commissioner's determinations are
presumed correct, and the taxpayer bears the burden of proving
that those determinations are erroneous. Rule 142(a); Welch v.
Helvering, 290 U.S. 111, 115 (1933). Except as otherwise
provided, gross income includes income from all sources. Sec.
61(a); Commissioner v. Glenshaw Glass Co., 348 U.S. 426 (1955).
In this regard, statutory exclusions from income must be narrowly
construed. Commissioner v. Schleier, 515 U.S. __, __, 115 S. Ct.
2159, 2163 (1995).
Section 104(a)(2) excludes from gross income "the amount of
any damages received (whether by suit or agreement * * *) on
account of personal injuries or sickness". This exclusion is
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