- 2 - declines to follow the reasoning of the Federal Courts of Appeals in Estate of Clarks v. United States, 202 F.3d 854 (6th Cir. 2000), and Cotnam v. Commissioner, 263 F.2d 119 (5th Cir. 1959), revg. in part and affg. in part 28 T.C. 947 (1957). Cheryl R. Frank, Chaya Kundra, and Gerald W. Kelly, Jr., for petitioners. George W. Bezold, for respondent. RUWE, Judge:* Respondent determined a deficiency of $55,037 in petitioners’ 1993 Federal income tax. The sole issue for decision is whether petitioners’ gross income includes the portion of the settlement proceeds of a Federal age discrimination claim that was paid as the attorney’s fees of Eldon R. Kenseth (petitioner) pursuant to a contingent fee agreement. FINDINGS OF FACT The parties have stipulated some of the facts, and the stipulations of facts and the attached exhibits are incorporated in this opinion. At the time of filing their petition, petitioners resided in Cambridge, Wisconsin. In a complaint filed with the Wisconsin Department of Industry, Labor, and Human Relations (DILHR) in October 1991, petitioner alleged that on March 27, 1991, APV Crepaco, Inc. *This case was reassigned to Judge Robert P. Ruwe by order of the Chief Judge.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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