- 7 -
upon which petitioner could rely to prove such an allocation, the
entire payment is presumptively includable in gross income. See
Taggi v. United States, 35 F.3d 93, 96 (2d Cir. 1994); Sherman v.
Commissioner, T.C. Memo. 1999-202; Gajda v. Commissioner, supra.
In sum, while we do not question that petitioner’s
involuntary termination of employment may have caused him
anguish, the evidence does not indicate that APC made the payment
in question to compensate him for personal injury. Rather, we
conclude that the payment represented severance pay, which is not
excludable from income. See Phillips v. Commissioner, supra.
To reflect the foregoing and the parties’ concessions,
Decision will be entered
under Rule 155.
Page: Previous 1 2 3 4 5 6 7
Last modified: May 25, 2011