Ante , at 7. Ante , at 9, n. 6. The logic of this argument is rather hard to follow. Even overlooking this fundamental defect in the Court's analysis, ADEA damages should be excludable from taxable income under our precedents. The Court emphasizes that liquidated damages under the ADEA are punitive in nature, ante, at 8, but it is an emphasis without relevance.
Punitive damages are traditionally available only in tort.
This contention is untenable. See Rev. Rul. But ignoring the Commissioner's off hand assertion in this case does not wipe the slate clean. There still remain 35 years of formal interpretations upon which taxpayers have relied and of agency positions upon which courts, including this one, have based their decisions. Unless the Court is willing to declare these positions to be unreasonable, they cannot be ignored.