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of petitioner and her children. No complaint was filed in court.
During 1999, petitioner individually entered into a
Settlement Agreement and Release of All Claims (the settlement
agreement) with the owner and operator of the television station
and the reporter involved in the news report. Petitioner
received the settlement proceeds pursuant to the settlement
agreement.
Section 61(a) provides that gross income includes all income
from whatever source derived unless excludable by a specific
provision of the Code. Section 104(a)(2) excludes from gross
income amounts received for personal physical injuries or
physical sickness. Nothing in the record indicates, and
petitioner does not contend, that the settlement proceeds are for
personal physical injuries or physical sickness. Rather,
petitioner contends that the settlement proceeds are for “claims
on behalf of [her] children and [her]self” and that respondent
“improperly attributed the income to [petitioner] rather than
[petitioner’s] children.” Petitioner “believe[s] the entire sum
is properly [her] children’s income”.
There is no support in the record for petitioner’s
characterization of the settlement proceeds as her children’s
income. Petitioner has no written documentation to show that the
children were to be considered as parties to the settlement. The
settlement agreement specifically listed petitioner individually
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Last modified: May 25, 2011