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corporation which allegedly told her that the attendant and
nursing care payments were not includable in petitioner’s gross
income and did not require the issuance of a Form 1099.
In separate notices of deficiency for the 1994, 1995, and
1996 taxable years, respondent determined that the payments
petitioner received from Healthcare were properly includable in
petitioner’s gross income. Petitioner did not file her Federal
income tax returns for each year in issue prior to the mailing of
the notice of deficiency for the specific year.
It is petitioner’s contention that the payments from
Healthcare are excludable from her gross income because it is
considered compensation for personal injuries, as permitted under
section 104(a)(1). In the alternative, petitioner argues that
the payments she received under the Michigan worker’s
compensation order are a direct result of Mr. Baldwin’s personal
injury arising out of his course of employment with GM.
Therefore, the reimbursement would likewise not be includable in
her gross income for the years in issue.
Respondent contends that Healthcare’s payments awarded to
petitioner under the Michigan Act were not received on account of
personal injuries or sickness of the petitioner as required under
section 104(a)(1). Instead, the payments were compensation to a
familial attendant-care provider for services provided to a
disabled former employee. Therefore, the payments are not
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