Lubart v. Commissioner

Petitioner Neil D. Lubart appeals the Tax Court’s summary judgment against him on his claim that $74,985 of income received upon his resignation constituted payment on account of sickness or personal injury excludable under section 104(a)(2) of the Internal Revenue Code. Because the allegations in the pleadings demonstrate that IBM offered the payment in lieu of damages and not to settle a claim for personal injury, we affirm.

A

Lubart was a successful engineer employed with International Business Machines Corp. (IBM) until 1992. At some point in 1992, Lubart became eligible to participate in…