Reginald James Smith - Page 3
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Revenue Code in effect for the year in issue, and all Rule
references are to the Tax Court Rules of Practice and Procedure.
Respondent determined a deficiency in petitioner’s 2004
Federal income tax of $12,546. Respondent also determined an
accuracy-related penalty in accordance with section 6662(a) in
the amount of $2,509 for 2004. After concessions,1 the issues
for decision are: (1) Whether a settlement payment received by
petitioner is excludable from gross income under section 104(a);
and (2) whether petitioner is liable under section 6662(a) for an
Some of the facts have been stipulated and are so found.
The stipulation of facts and attached exhibits are incorporated
herein by this reference. At the time of the filing of the
petition, petitioner resided in Oakland, California.
Petitioner worked as a warehouse employee at Onyx
Environmental Services (hereinafter Onyx) from April 15, 2002
through November 2002 when he was terminated. On December 16,
2003, petitioner and another individual filed a complaint for
1 Respondent concedes that petitioner is not liable for
self-employment tax. Additionally, respondent introduced a Form
4340, Certificate of Assessments, Payments, and Other Specified
Matters, showing an assessment of tax on July 24, 2006, 2 months
after petitioner timely filed a petition with this Court.
Respondent was uncertain as to the basis for the assessment. We
presume that respondent has abated or will abate the assessment
and will make no further assessments until the decision of the
Court is final. See sec. 6213(a).
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Last modified: November 10, 2007