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v. Commissioner, T.C. Memo. 1997-563; Moran v. Commissioner, T.C.
Memo. 1997-412; Fredrickson v. Commissioner, T.C. Memo. 1997-125.
The Tax Court has also invariably held that recipients of
settlement proceeds from the State Farm class action lawsuit are
required to include the proceeds in gross income. See, e.g.,
Westmiller v. Commissioner, T.C. Memo. 1998-140; Reiher v.
Commissioner, T.C. Memo. 1998-75; Easter v. Commissioner, T.C.
Memo. 1998-8; Brewer v. Commissioner, T.C. Memo. 1997-542, affd.
without published opinion 172 F.3d 875 (9th Cir. 1999); Gillette
v. Commissioner, T.C. Memo. 1997-301; Hayes v. Commissioner, T.C.
Memo. 1997-213; Hardin v. Commissioner, T.C. Memo. 1997-202;
Raney v. Commissioner, T.C. Memo. 1997-200; Clark v.
Commissioner, T.C. Memo. 1997-156; Berst v. Commissioner, T.C.
Memo. 1997-137; Martinez v. Commissioner, T.C. Memo. 1997-126,
affd. without published opinion 83 AFTR 2d 99-362, 99-1 USTC par.
50,168 (9th Cir. 1998); Fredrickson v. Commissioner, supra.
Approximately 3 months after the Supreme Court’s opinion in
Schleier, respondent mailed petitioner the 30-day letter of
September 28, 1995, which proposed that the proceeds of her
settlement of the State Farm class action lawsuit be included in
her gross income. Thereafter, petitioner signed a series of
consents extending the period of limitations on assessment for
the 1992 tax year; in due course, in 1998, respondent issued the
notice, which embodies respondent’s determination to give effect
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