- 5 - income pursuant to section 105(c) and (e). Alternatively, petitioners claim that, because of the determination letter, respondent is precluded from challenging the qualification of the Plan under section 105. Respondent challenges the qualification of the Plan as an accident and health plan for employees under section 105(e), claims that the plan distributions were not computed with reference to the nature of the injury under section 105(c)(2), claims that the Plan distributions did not constitute payments for the permanent loss or loss of use of a member or function of the body under section 105(c)(1), and claims that petitioners are not entitled to rely on the determination letter. Because we agree with respondent that the plan distributions were not computed with reference to the nature of the injury under section 105(c)(2), we need not consider whether the Plan qualifies as an accident and health plan for employees under section 105(e) or whether Plan distributions constituted payments for the permanent loss or loss of use of a member or function of the body under section 105(c)(1). We also agree with respondent that petitioners are unable to rely on the determination letter. II. Applicable Law A. The Statute Section 105(a) provides the general rule that amounts received by an employee through accident or health insurance for personal injuries or sickness shall be included in gross incomePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011