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MCKENNY v. U.S.

No. 18-10810.

973 F.3d 1291 (2020)

Joseph M. MCKENNY, Amy F. McKenny, Plaintiffs-Appellees/Cross-Appellants, v. UNITED STATES of America, Defendant-Appellant/Cross-Appellee.

United States Court of Appeals, Eleventh Circuit.

September 1, 2020.

Attorney(s) appearing for the Case

Jason A. Reschly , Derek T. Teeter , Husch Blackwell, LLP, Kansas City, MO, Joshua Byrne Spector , Law Offices of Joshua Spector, PA, Miami, FL, Paul Dewey Turner , Perlman Bajandas Yevoli & Albright, PL, Fort Lauderdale, FL, for Plaintiffs-Appellees.

Norah Bringer , Gregory L. Jones , Gilbert Steven Rothenberg , Francesca Ugolini , U.S. Department of Justice, Chief Appellate Section Tax Division, Washington, DC, for Defendant-Appellant.

Before JORDAN, GRANT, and SILER, Circuit Judges.

Joseph and Amy McKenny sued their accounting firm, alleging that its negligence led to them having to pay over $2 million in federal taxes to the government. The firm, while denying liability, settled the case by paying the McKennys $800,000.

Does that sum constitute taxable income to the McKennys? That question of...

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