Excerpt: In 1999, the taxpayer suffered an injury and applied for Social Security disability benefits. The Social Security Administration resisted the claim, but ... the taxpayer prevailed, receiving a lump-sum payment of benefits in 2001 .... For 2001, the taxpayer received a Form SSA-1099, Social Security Benefit Statement, from the Social Security Administration, showing 'benefits for 2001' of $21,656.00. [T]he taxpayer included no benefits [in gross income reporting for 2001].  MORE >>