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“an amount received (other than workmen’s compensation) through
prosecution of a legal suit or action based upon tort or tort
type rights, or through a settlement agreement entered into in
lieu of such prosecution.” Sec. 1.104-1(c), Income Tax Regs.
For the taxpayer’s damages to be excludable from gross
income under section 104(a)(2), the nature of the claim must be a
tort or a tort type right. United States v. Burke, 504 U.S. 229,
234 (1992); sec. 1.104-1(c), Income Tax Regs. State law
determines the nature of the legal interests involved. United
States v. Mitchell, 403 U.S. 190, 197 (1971). The taxpayer must
also prove that he received the damages on account of personal
injuries or sickness. Commissioner v. Schleier, 515 U.S. 323,
330 (1995). Statutory exclusions from income are to be narrowly
construed. Id. at 328.
Fla. Stat. Ann. sec. 440.205 provides as follows: “No
employer shall discharge, threaten to discharge, intimidate, or
coerce any employee by reason of such employee’s valid claim for
compensation or attempt to claim compensation under the Workers’
Compensation Law.” Fla. Stat. Ann. sec. 440.205 is a statutory
cause of action for wrongful discharge. Scott v. Otis Elevator
Co., 572 So. 2d 902, 903 (Fla. 1990) (citing Smith v. Piezo Tech.
& Profl. Admrs., 427 So. 2d 182 (Fla. 1983)). In Scott v. Otis
Elevator Co., supra at 903, the Florida Supreme Court stated:
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Last modified: May 25, 2011