Individual Income Tax Contested Tax Case Docket # 09 REV 05218 - 09/27/2011

Issue: Whether Petitioner Harrison’s receipt of the $450,000.00 from the Company in the 2007 tax year constitutes taxable income under North Carolina law when the federal authorities seized the $450,000.00 which had been placed in Petitioner’s personal money market account in that same year prior to Petitioner signing a Settlement Agreement in March 2008 in which he consented to forfeit all but $10,000.00 of the funds in said account.