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attorney to determine the proper tax treatment of petitioner’s
settlement award. After discussing the relevant facts and
circumstances of the class action lawsuit with the class action
attorneys, the tax attorney advised petitioner to report $12,500
of the $175,000 settlement as taxable income. On the basis of
that advice, petitioner reported $12,500 on his 2002 tax return.
Accordingly, petitioner is not liable for the accuracy-related
penalty.
In reaching all of our holdings herein, we have considered
all arguments made by the parties, and, to the extent not
mentioned above, we conclude they are irrelevant or without
merit.
To reflect the foregoing,
Decision will be entered
under Rule 155.
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Last modified: November 10, 2007