-2- petitioners’ concession, we decide whether section 104(a)(2) excludes from their 2000 gross income $132,000 that petitioner William L. Kidd (Kidd) received in settlement of the unspecified “equitable remedy” awarded to him in his reverse discrimination lawsuit (lawsuit) against the State of California and two of its agencies (collectively, defendants). We hold it does not. We also decide whether petitioners are liable for an accuracy-related penalty under section 6662(a) and (d). We hold they are not. FINDINGS OF FACT Some facts were stipulated. The stipulated facts and the exhibits submitted therewith are incorporated herein by this reference. We find the stipulated facts accordingly. Petitioners, husband and wife, resided in California when their petition was filed. They filed a joint 2000 Federal income tax return (2000 return) on August 19, 2001. In 1985, Kidd and Edward Swiden (Swiden) commenced the lawsuit in the California Superior Court for Sacramento County (superior court) by filing a petition for writ of mandamus and complaint for declaratory and injunctive relief. The defendants were the State of California (California), the California Personnel Board (board), and the California Department of Fish 1(...continued) applicable versions of the Internal Revenue Code.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
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