-5- The agreement between petitioner and DaimlerChrysler was finalized in October 2002. It was signed by petitioner on October 15, 2002, and by a DaimlerChrysler agent on October 28, 2002. By signing the agreement, petitioner agreed with the description of her allegations in the complaint “That during [petitioner’s] employment with Employer, she was harassed by a fellow employee and that, as a result, she has suffered personal injury and emotional distress.” The agreement specifically stated DaimlerChrysler would issue 1099 forms, and that petitioner would hold DaimlerChrysler harmless “With respect to withholding or any applicable income and employment taxes in connection with the consideration paid hereunder.” Petitioner attested that she was given 3 weeks to review the agreement and encouraged to seek counsel. Petitioner did receive legal advice3 regarding the settlement, but she did not follow that advice. Deficiency Respondent determined a deficiency in petitioners’ 2002 Federal income tax of $2,164. Respondent received from Daimler- Chrysler a Form 1099-MISC, Miscellaneous Income, issued to 3Petitioner’s counsel for the lawsuit and settlement negotiations with DaimlerChrysler is also representing petitioners in this case. He recommended that petitioner not accept the settlement.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011