-2-
concessions,2 there are four issues for decision. The first
issue is whether a jury award from an employer-retaliation
lawsuit is excludable from petitioner’s income under section
104(a)(2) as damages received on account of personal physical
injury or physical sickness. We hold that it is not. The second
issue is whether petitioner must include in income the fee paid
from the jury award to the attorney who represented her in the
employer-retaliation lawsuit. We hold that she must. The third
issue is whether petitioner is liable for the accuracy-related
penalty under section 6662(a). We hold that she is. The fourth
issue is whether the jury award is community property under
California law. We hold that it is, and therefore one-half of
the jury award is not includable in petitioner’s income.
FINDINGS OF FACT
Some of the facts have been stipulated and are so found.
The stipulation of facts and the accompanying exhibits are
incorporated by this reference. Petitioner resided in Pacifica,
California, at the time she filed the petition.
Petitioner was a non-tenured lecturer in the Humanities
Department of San Francisco State University (the University) in
1(...continued)
Rules of Practice and Procedure, unless otherwise indicated. All
dollar amounts are rounded to the nearest dollar.
2Respondent conceded the accuracy-related penalty relating
to the underpayment of tax attributable to the portions of the
jury award petitioner included in income and paid her attorney.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011