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Campbell v. State Farm was settled by the parties
to that suit in late 2001. The settlement agreement was
approved by the District Court in an amended final
judgment entered on November 27, 2001. Petitioner
received her share of the settlement proceeds, $30,199,
in 2002. The record of this case does not contain the
release that, we assume, petitioner executed in return
for the payment.
The underlying issue is whether petitioners’ gross
income for taxable year 2002 should be increased by
$30,199, the amount determined in the notice of
deficiency. As noted above, petitioners acknowledge in
their petition that they had received $199 of that amount
as “interest”, and they state that they had “sent $32.86
to the IRS as payment for the additional taxes for $199.”
Thus, petitioners concede in their petition that their
gross income for 2002 should be increased by $199 of
the amount determined in the notice of deficiency.
Respondent’s motion for summary judgment will be granted
as to that amount.
As to the bulk of the increase in gross income
determined in the notice of deficiency, viz $30,000, the
issue raised in the petition is whether that amount
qualifies as damages received “on account of personal
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Last modified: May 25, 2011