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as a party, not her children. (The settlement agreement is
governed by Utah law. Under Utah law, petitioner would have been
precluded from settling her children’s potential claims without
court approval. Hawkins v. Peart, 37 P.3d 1062 (Utah 2001)).
The settlement agreement was signed by petitioner individually.
The check for the settlement proceeds was made payable to
“Sherianne Cotterell”. A Form 1099-MISC, Miscellaneous Income,
was issued by the television station to petitioner as nonemployee
compensation. Petitioner did not contact the television station
to request that the Form 1099-Misc be reissued to any other
party. None of petitioner’s three children filed a 1999 income
tax return or otherwise reported as income any of the $10,000
settlement proceeds. Petitioner deposited the $10,000 settlement
proceeds into a bank account in her name. Petitioner had the
power to dispose of the $10,000 settlement proceeds as she deemed
necessary. We have no choice on this record but to sustain
respondent’s determination.
Reviewed and adopted as the report of the Small Tax Case
Division.
Decision will be entered
for respondent.
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Last modified: May 25, 2011