- 2 - income tax for 2000 in the amount of $2,998. The issue for decision is whether a $20,000 payment that David Gerald Lockmiller (petitioner) received in 2000 from his former employer is excludable from gross income under section 104(a)(2). We hold that it is not. Background Some of the facts have been stipulated, and they are so found. Petitioner resided in San Francisco, California, at the time that his petition was filed with the Court. From July 1988 to January 2000, petitioner was employed by UC Construction Co. of Corte Madera, California (UC Construction) as an accountant/bookkeeper. Petitioner’s employment with UC Construction terminated on January 28, 2000, because of a dispute that arose between the parties concerning the terms of petitioner’s compensation package, particularly with regard to profit-sharing. In April 2000, petitioner and UC Construction entered into a Settlement Agreement. Shortly thereafter, and pursuant to the terms of that document, petitioner received a lump-sum payment of $20,000 from UC Construction.2 In exchange, petitioner agreed “not to make any future claims against UC Construction for salary, vacation pay, or any other benefits to which he claims to 2 The Settlement Agreement provided that “If at all, UC Construction will report this payment by way of 1099-MISC form for miscellaneous income for the year 2000.”Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
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