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sickness, except to the limited extent of allowing an exclusion
for damages up to the amount paid for medical care necessitated
by emotional distress. Petitioner is unable to take advantage
even of this limited exception because there is no evidence of
how much, if anything, she spent to obtain medical care. Thus,
the Court holds that petitioner is not entitled under section 104
to exclude from income any portion of the payment she received
pursuant to the malicious prosecution lawsuit.
To reflect the foregoing and concessions by the parties,
which, inter alia and as noted previously, resolved the section
6662(a) penalty issue,
Decision will be entered
under Rule 155.
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Last modified: May 25, 2011