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petitioners may exclude from gross income under section 104(a)(2)
an amount received by petitioner William Roger Thorpe from his
employer upon termination of employment on the ground that such
amount represents damages received on account of personal injury.
As explained in more detail below, we agree with respondent that
exclusion under section 104(a)(2) is not authorized and that
partial summary judgment in respondent's favor is therefore
appropriate.
Background2
Petitioner was employed by International Business Machines
Corp. (IBM) until his termination on July 23, 1992. Petitioner's
termination at IBM was effected through petitioner's
participation in the IBM Modified and Extended Individual
Transition Option Program (ITO-II Program). The ITO-II Program
allowed IBM employees to resign or retire early, receiving lump-
sum payments and other benefits.
Petitioner was required to sign a General Release and
Covenant Not to Sue (the release) as a condition of receiving the
1(...continued)
references are to the Internal Revenue Code in effect for the
taxable year in issue.
Respondent's motion was filed as a motion for summary
judgment. We treat it as a motion for partial summary judgment
for the reason discussed infra at note 4.
2 The following is a summary of the relevant facts that do not
appear to be in dispute; they are stated solely for the purpose
of deciding the pending motion, and they are not findings of fact
for this case. See Fed. R. Civ. P. 52(a); Rule 1(a).
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