-8-
Neither Boise nor petitioners attached the 2000 Form 1099-MISC to
petitioners’ 2000 return.
OPINION
We decide whether the $132,000 payment is includable in
petitioners’ 2000 gross income. Petitioners argue it is not.
According to petitioners, Kidd received this payment in
settlement of the unspecified “equitable remedy” that was awarded
to him for injuries which were unrelated to traditional work-
related compensation such as back pay or a lost job opportunity.
Petitioners assert that the claims underlying the lawsuit were
tortlike in nature and that the $132,000 payment compensated Kidd
for a personal physical injury. As to the latter, petitioners
contend, a personal physical injury under section 104(a)(2) need
not manifest itself like a broken bone would but may be of a
latent type such as an injury to an individual’s dignity or
self-respect. Respondent determined and argues that the $132,000
payment was includable in petitioners’ 2000 gross income.
According to respondent, petitioners bear the burden of proof as
to this deficiency and have failed to establish that either
(1) the settlement amount was paid on account of personal
physical injuries or (2) a cause of action underlying the lawsuit
was based upon tort or tort type rights. Respondent asserts,
without reference to any particular, that petitioners have
neither asserted nor established that section 7491(a) applies in
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