F. Browne Gregg, Sr., and Juanita O. Gregg - Page 3




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               In Fabry, the question was whether a $500,000 payment the              
          taxpayers received for damage to their business reputation in               
          settlement of a tort action was excludable from gross income as             
          damages received “on account of personal injuries or sickness”              
          within the meaning of section 104(a)(2).  The Court of Appeals              
          stated that the IRS had stipulated that the $500,000 payment was            
          properly allocable as damage to the Fabrys’ business reputation.            
          Id. at 1268.  The Court of Appeals found on the basis of the                
          “unique facts” presented that the Fabrys’ business was so much a            
          part of their persona that “Their business reputation was their             
          personal reputation.”  Id. at 1270.  The Court of Appeals found             
          that the Fabrys had suffered “distress, humiliation and mental              
          anguish * * * through the loss of their good name”.  Id.                    
          Accordingly, the Court of Appeals concluded that the $500,000 the           
          Fabrys received on account of injuries to their business                    
          reputation was received on account of personal injuries and thus            
          was excludable from gross income under section 104(a)(2).                   
               In the instant case, by contrast, the parties have not                 
          stipulated that any part of the jury awards that petitioner                 
          received is properly allocable to damage to his reputation or to            
          any other particular type of injury, personal or otherwise.                 
               Petitioners bear the burden of proof.  See Rule 142(a);                
          Welch v. Helvering, 290 U.S. 111, 115 (1933); Feldman v.                    
          Commissioner, 20 F.3d 1128, 1132 (11th Cir. 1994) (the                      






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