Threlkeld v. Commissioner
United States Tax Court
Petitioner settled a civil lawsuit for malicious prosecution and other claims for $ 300,000, of which the parties to the lawsuit allocated $ 75,000 to injury to petitioner's professional reputation.
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Petitioner settled a civil lawsuit for malicious prosecution and other claims for $ 300,000, of which the parties to the lawsuit allocated $ 75,000 to injury to petitioner's professional reputation. Held, there is no valid distinction between damages received for injury to personal reputation and those received for injury to professional or business reputation for purposes of sec. 104(a)(2), I.R.C. 1954. Roemer v. Commissioner, 79 T.C. 398 (1982), revd. 716 F.2d 693 (9th Cir. 1983), will be no longer followed. Held, further, damages received in settlement of a claim for malicious prosecution…
1Opinion of the Court
GOFFE, Judge:
The Commissioner determined deficiencies in petitioner’s Federal income taxes for the taxable years 1979 and 1980 in the amounts of $3,225.37 and $18,838.18, respectively. After concessions by the parties, the sole issue for decision is whether the amount of $21,500 received in 1980 in settlement of a suit for malicious prosecution that represented recovery for injury to petitioner’s professional reputation is excludable from income under section 104(a)(2).1
FINDINGS OF FACT
Some of the facts have been stipulated. The stipulation of facts and accompanying exhibits are incorporated…
2Cases cited22 opinions
- Burnet v. HarmelSupreme Court of the United States · 1932
- Morgan v. CommissionerSupreme Court of the United States · 1940
- Poe v. SeabornSupreme Court of the United States · 1930
- Jerome v. United StatesSupreme Court of the United States · 1943
- Mason K. Knuckles and Bernice A. Knuckles v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1965
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3Cited by135 opinions
- United States v. BurkeSupreme Court of the United States · 1992
- Commissioner v. SchleierSupreme Court of the United States · 1995
- Robinson v. CommissionerUnited States Tax Court · 1994
- Frank E. & Mildred E. Rickel v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1990
- Metzger v. CommissionerUnited States Tax Court · 1987
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