- 14 - and all claims”, including claims based on sex discrimination, against Heartland in exchange for $7,650. However, the settlement agreement did not specifically carve out any portion of the settlement payment as a settlement on account of personal physical injury or physical sickness, let alone make reference to a physical injury or a physical sickness, if any, resulting from any sex discrimination by Heartland. Because the settlement agreement did not allocate any part of the settlement payment on account of a personal physical injury or physical sickness, and there is no evidence in the record to support such an allocation, we are not in a position to conclude that any part of the settlement payment was on account of physical injury or physical sickness. In sum, we are unable to find that any portion of the $7,650 settlement payment was intended to compensate Mrs. Prasil for a personal physical injury or physical sickness. In view of the foregoing, we hold that the $7,650 settlement payment that Mrs. Prasil received in 1999 in settlement of a sex discrimination claim against her former employer is includable in petitioners’ gross income for 1999. Accordingly, we sustain respondent’s determination in this regard. We have considered all of the other arguments made by petitioners and, to the extent that we have not specifically addressed them, we conclude they are without merit.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
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