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the Court to determine a specific tort or tort type claim or
claims that may have served as a basis for settlement, if any. A
failure to show the specific amount of the payment allocable to
the claims of tort or tort type damages for personal injuries
results in the entire amount being presumed not to be excludable.
See Taggi v. United States, 35 F.3d 93, 96 (2d Cir. 1994); Getty
v. Commissioner, 91 T.C. 160, 175-176 (1988), affd. on this issue
and revd. on other issues 913 F.2d 1486 (9th Cir. 1990).
The $24,060.44 settlement payment petitioner husband
received from IBM in 1994 does not satisfy the requirements for
exclusion of the payment under section 104(a)(2). Consequently,
on this record, the Court holds that such payment is includable
in petitioners' gross income for that year.
Decision will be entered
for respondent.
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Last modified: May 25, 2011