Paul E. Ballmer - Page 5




                                        - 5 -                                         
          taxpayer to prove that all or part of those funds is not taxable.           
          Hardy v. Commissioner, 181 F.3d 1002, 1004 (9th Cir. 1999), affg.           
          T.C. Memo. 1997-97.  Accordingly, petitioner bears the burden of            
          proof.  See Rule 142(a).                                                    
               Section 61(a) provides that gross income includes all income           
          from whatever source derived.  Section 61(a) broadly applies to             
          any accession to wealth, and statutory exclusions from income are           
          narrowly construed.  See Commissioner v. Schleier, 515 U.S. 323,            
          327 (1995); United States v. Burke, 504 U.S. 229, 233 (1992);               
          Commissioner v. Glenshaw Glass Co., 348 U.S. 426, 431 (1955).               
               As applicable here, section 104(a) excludes from gross                 
          income:                                                                     
               SEC. 104. COMPENSATION FOR INJURIES OR SICKNESS.                       
                    (a) In General.–– Except in the case of amounts                   
               attributable to (and not in excess of) deductions                      
               allowed under section 213 (relating to medical, etc.,                  
               expenses) for any prior taxable year, gross income does                
               not include––                                                          
                         *    *    *    *    *    *    *                              
                         (2) the amount of any damages (other than                    
                    punitive damages) received (whether by suit or                    
                    agreement and whether as lump sums or as periodic                 
                    payments) on account of personal physical injuries                
                    or physical sickness;                                             
                         *    *    *    *    *    *    *                              












Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  Next 

Last modified: November 10, 2007