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payments as salary continuation severance payments when (1) she
responded to GC&D’s draft separation agreement, (2) signed the
separation agreement, and (3) received Form W-2 from GC&D in
which the firm reported such payments as wages, tips, and other
compensation. She did not.
Based upon our examination of the entire record before us,
we find that the salary continuation severance payments that GC&D
made to petitioner pursuant to the separation agreement are gross
income. See sec. 61(a)(1); sec. 1.61-2(a)(1), Income Tax Regs.
On that record, we further find that petitioner has failed to
carry her burden of establishing that the nature of the claim
that was the actual basis for the payments made pursuant to the
separation agreement was certain personal physical injuries or
physical sickness that she suffered while working for GC&D
relating to (1) a miscarriage that she may have had, (2) a
pregnancy that she may have had when she left the firm, or
(3) another cause. On the record before us, we find that peti-
tioner has failed to carry her burden of establishing that she
received the payments at issue on account of personal physical
injuries or physical sickness. On that record, we further find
that petitioner has failed to carry her burden of establishing
that she is entitled under section 104(a)(2) to exclude the
payments at issue from her gross income.
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