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amount, petitioners reported that $17,880 ($1,490 x 12) was
taxable for each year. The remaining $18,120 ($1,510 x 12) for
each year attributable to the amount of the payments made during
the year in satisfaction of the Jury Award was not reported as
taxable.
Respondent determined that the entire $36,000 in payments
for each year is taxable.
Petitioners first appeared before this Court with respect to
taxable year 1991, in a case conducted under the "small tax case"
procedures authorized by section 7463 and Rules 170 through 179.
The parties filed cross-motions for summary judgment under Rule
121. The relevant issue there was whether petitioners were
entitled, on the basis of section 104(a)(2), to exclude the
entire $36,000 payment, or a portion thereof, that petitioner
received pursuant to the Settlement Agreement. In Green v.
Commissioner, T.C. Summary Opinion 1995-167, we denied
petitioners' motion for summary judgment and granted respondent's
motion for summary judgment insofar as we concluded that the
$18,120, attributable to the amount of the Jury Award, was
includable in petitioners' income for 1991. We further concluded
that a material fact remained in dispute with respect to the
remaining portion of the $36,000 payment, or $17,880, which
petitioners initially included in income, but later contended was
excludable under section 104(a)(2). We found that the record was
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