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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.
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