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that the abbreviation “i.e.” means “for example”. Respondent
argues that the parenthetical phrase “personal injury (i.e.
emotional distress) damages only” is a limiting phrase and the
abbreviation “i.e.” means “that is”.
“I.e.” is an abbreviation for the Latin phrase “id est”,
which means “that is” or “that is to say”. Black’s Law
Dictionary 746 (6th ed. 1990). Accordingly, we agree with
respondent that the parenthetical phrase in the settlement
agreement limits and defines the phrase “personal injury” to
mean emotional distress only.
Furthermore, the settlement agreement does not contain
language indicating that any portion of the settlement was paid
for a physical injury or physical sickness. Thus, even if the
Court were to accept petitioner’s reading of the settlement
agreement, there is no apportionment of any of the settlement
proceeds to a physical injury or physical sickness.
Accordingly, we conclude that none of the settlement
proceeds of $157,000 is excluded from gross income.
II. Addition to Tax
A. Burden of Production
Section 7491(c) provides that the Commissioner bears the
burden of production with respect to the liability of any
individual for additions to tax. “The Commissioner’s burden of
production under section 7491(c) is to produce evidence that it
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