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action. Such language relied on by petitioner in the Settlement
Agreement, therefore, can be ignored. See Peaco v. Commissioner,
T.C. Memo. 2000-122. The Court, therefore, holds that the
amounts awarded to petitioner for back pay and liquidated damages
under the Fair Labor Standards Act as part of the class action
constitute gross income and are not excludable under section
104(a)(2). See Commissioner v. Schleier, supra. Respondent,
therefore, is sustained.
Reviewed and adopted as the report of the Small Tax Case
Division.
Decision will be entered
under Rule 155.
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Last modified: May 25, 2011