McKAY, Circuit Judge.
Petitioner prevailed in a Title VII lawsuit against her former employer. The defendant in that action paid Petitioner $150,000 in partial satisfaction of the judgment. The $150,000 payment was issued jointly to Petitioner and her attorneys. She received $76,600.75 of the settlement; her attorneys retained the remaining $73,399.25 as legal fees.
Originally, Petitioner reported the entire $150,000 as "Other Income" on her 1993 federal income...
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