-2-
P-H received any part of the $135,000 sum on account of
personal physical injury or physical sickness, as
required by sec. 104(a)(2), I.R.C.
Held, further, Ps are liable for accuracy-related
penalties pursuant to sec. 6662, I.R.C.
Held, further, Jurisdiction of this Court is not
available to consider Ps claim for suspension of
interest under sec. 6404(g), I.R.C.
Thomas F. DeCaro, Jr., for petitioners.
Innessa Glazman Molot, for respondent.
MEMORANDUM FINDINGS OF FACT AND OPINION
NIMS, Judge: Respondent determined a deficiency of $146,316
in petitioners’ 2001 Federal income tax, as well as an accuracy-
related penalty under section 6662(a) and (d) of $29,263 for
substantial understatement of income tax. Unless otherwise
indicated, all section references are to the Internal Revenue
Code in effect for the year in issue. After concessions, the
issues for decision are: (1) Whether any portion or the entirety
of certain unreported settlement proceeds aggregating $135,000,
specifically identified in a settlement agreement between
petitioner Jesse Goode and the District of Columbia as nontaxable
pursuant to section 104(a)(2), is excludable from petitioners’
2001 gross income; (2) whether petitioners are liable for
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