Proposed Treasury Regulation 127270-06 (Sept. 14, 2009)

(relates to the exclusion from gross income for amounts received on account of personal physical injuries or physical sickness that reflect amendments under the Small Business Job Protection Act of 1996; deleted is the requirement that to qualify for exclusion from gross income, damages received from a legal suit, action, or settlement agreement must be based upon “tort or tort type rights;” taxpayers affected are those receiving damages on account of personal physical injuries or physical sickness and taxpayers paying such damages).