Charles Leonard Braden and Joice Stieber Braden - Page 4

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                  Respondent’s motion for summary judgment concedes that              
             there was reasonable cause for the understatement of tax                 
             required to be shown on petitioners’ 2002 return and that                
             petitioners acted in good faith.  Accordingly, respondent                
             concedes, pursuant to section 6664(c), that petitioners are              
             not liable for the accuracy-related penalty of $1,254.  In               
             light of that concession, respondent’s motion is deemed to               
             be a motion for partial summary judgment.                                
                  The petition asserts that $30,000 of the amount                     
             received from the Campbell v. State Farm Settlement Fund                 
             “was for personal injury” and is not includable in gross                 
             income.  The petition refers to the fact that this amount                
             was received in connection with the settlement of Campbell               
             v. State Farm Mut. Auto. Ins. Co., CIV 99-505-TUC, D. Ariz.              
             (hereafter referred to as Campbell v. State Farm) a                      
             lawsuit that expressly required participants to have                     
             “sustained [personal] injury”.  The petition asserts that                
             the remainder, $199, “was for interest”.  The petition                   
             states that petitioners had “sent $32.86 to the IRS as                   
             payment for the additional taxes for $199.”                              
                  According to respondent, the record “clearly shows                  
             that Campbell v. State Farm was not a personal injury suit,              
             but was solely a complaint for compensatory damages, plus                
             interest and fees, directly and proximately arising from                 






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