Johnson, et ux. v. Comr., T.C. Memo. 2009-156

(settlement proceeds received from mortgage company over dispute concerning foreclosure of petitioner's home includible in petitioner's gross income because it was not compensation for physical injury or illness, but portion of settlement used to pay attorney fees is deductible; petitioner's spouse did not satisfy requirements for innocent spouse relief; spouse failed to testify as to why she had no reason to know of the understatement on the return).