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whether an LPCF payment under Louisiana law included interest
which was not excludable from income under section 104(a)(2).
As in Greer, the reasoning of Rozpad is helpful in deciding this
issue.
Petitioners contend that Greer is distinguishable because
the Agreement and the Satisfaction of Judgment in that case did
not state that the settlement was entirely for personal injuries.
We disagree. The RRC agreement is similar to the Agreement and
the Satisfaction of Judgment in Greer because the agreement in
each case was silent as to whether any part of the settlement was
for interest. The check from LPCF to the taxpayer in Greer bore
a numerical code which indicated that part of the payment was for
interest. Here, the LPCF check to petitioners also bore a
numerical code which indicated $439,000 of the payment was for
interest.
D. Conclusion
We conclude that $255,983 of the $893,000 payment was
interest.
To reflect respondent’s concession and the foregoing,
Decision will be
entered under Rule 155.
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Last modified: May 25, 2011