Question: You are interviewing a client before preparing his tax return. He indicates that he did not list as income $96,000 received as a recovery for

You are interviewing a client before preparing his tax return. He indicates that he did not list as income $96,000 received as a recovery for false imprisonment.
What should you do with respect to this significant recovery?
Partial list of research aids:
CCA 200809001.
Daniel and Brenda Stadnyk, T.C.Memo. 2008-289.
Rev.Rul. 2007-14, 2007-1 C.B. 747.
§ 104.

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