Francis G. Laguaite - Page 7




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         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.                                 























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