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lost wages; and (2) involved personal injury-like claims for
emotional distress as evidenced from the pleadings. The Court
stated that it "was closely involved with the settlement, and
would allocate the total settlement to such tort-like claims and
remedies."
In April 1997, respondent issued the notice of deficiency
involved herein. In the notice of deficiency, respondent
determined that petitioner was not entitled to an exemption under
section 104(a)(2) and included petitioner's recovery in gross
income for 1993, the year of its receipt.
OPINION5
1. General Discussion of Section 104(a)(2)
Except as otherwise provided, gross income includes income
from all sources. Sec. 61(a); Commissioner v. Glenshaw Glass
Co., 348 U.S. 426 (1955). Although section 61(a) is to be
broadly construed, statutory exclusions from income are narrowly
construed. Commissioner v. Schleier, 515 U.S. 323, 336-337
(1995); United States v. Burke, 504 U.S. 229, 233 (1992); Kovacs
v. Commissioner, 100 T.C. 124, 128 (1993), affd. per curiam
without published opinion 25 F.3d 1048 (6th Cir. 1994).
5 As previously noted, briefs amicus curiae were filed by
or on behalf of taxpayers similarly situated to petitioner. In
addressing petitioner's contentions we have also considered the
contentions made by the amici curiae.
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