Commissioner v. Schleier
United States Supreme Court
515 U.S. 323 (1995)
Relevant factsFree
Schleier (plaintiff) settled an age-discrimination claim under the ADEA for back pay and liquidated damages, and excluded the liquidated damages from his gross income as compensation for personal injury; the Commissioner (defendant) determined the liquidated damages were taxable, but the Tax Court and court of appeals both ruled for Schleier, and the Supreme Court granted certiorari.
IssueFree
Whether a federal tax exclusion for damages received due to personal injury or sickness is applicable only where the taxpayer shows how the damages are related to the injury or sickness.