- 10 - SF 50 is part and parcel of the mediation agreement and, therefore, establishes that the $60,000 represented payment for personal physical injuries.5 The Court rejects that argument. The mediation agreement carefully recites the various bases upon which settlement was reached. Petitioner's on-the-job injury is not listed in the mediation agreement. Indeed, if petitioner's contention is correct, and the work-related injury is deemed to have been part of the mediation agreement, such a conclusion could seriously impair petitioner's entitlement to worker's compensation benefits because the agreement was intended to settle all differences between the parties. Petitioner, however, at the time of trial, continued pursuing her worker's compensation case. On this record, the Court is satisfied that the $60,000 payment to petitioner by DFAS did not include any amount for physical injuries or physical suffering. Respondent, therefore, is sustained on this issue. The final issue is whether petitioners are liable for the accuracy-related penalty under section 6662(a) for a substantial understatement in tax or for negligence or disregard of rules and regulations. Section 6662(a) provides that, if it is applicable to any portion of an underpayment in taxes, there shall be added 5 As noted earlier, SF 50, in the Remarks portion, stated that petitioner was resigning her employment because of "medical, mental, and physical trauma".Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011