Juan Rodriguez - Page 19




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             of this kind are includable in gross income.  See sec.                   
             1.61-2(a)(1), Income Tax Regs.  Similarly, Mr. Allen's                   
             letter of March 27, 1995, states that the payment was to                 
             offset relocation expenses and to compensate petitioner.                 
             The receipt for the advance on the lump-sum payment                      
             allocates the entire amount to "services".  Compensation                 
             payments are includable in the recipient's gross income.                 
             See sec. 1.61-2(a), Income Tax Regs.                                     
                  Petitioner cites no authority under which the lump-sum              
             payment would be excluded from gross income.  We understand              
             that payments to a Government witness are sometimes                      
             considered by the Commissioner as welfare payments to the                
             recipient that are not includable in the recipient's                     
             income.  See G.C.M. 37,028 (Mar. 3, 1977) and G.C.M. 37,564              
             (June 9, 1978).  For example, assistance payments made by                
             the Department of Justice under the witness protective                   
             program of the Organized Crime Control Act of 1970, Pub. L.              
             91-452, tit. V, 84 Stat. 922, 933-934, are treated                       
             as welfare payments and are excluded from gross income.                  
             See G.C.M. 37,028 (Mar. 3, 1977).                                        
                  The lump-sum payment made to petitioner in this case                
             was not made under the witness protection program, nor was               
             it made in consideration of petitioner's declining to enter              
             the witness protection program.  Petitioner has shown no                 






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