- 7 - promulgated by the Federal Aviation Administration, rendered him ineligible for employment as an airline pilot. Under a loss of license plan maintained by the pilot’s employer, because of his medical incapacity, he became entitled to certain payments. Under that plan, all medically incapacitated pilots received the same yearly benefit. We determined that the payments received by the pilot failed to satisfy the requirement of section 105(c)(2) that payments be computed with reference to the nature of the injury: The benefits, however, do not vary according to the type of injury received and a pilot who has a heart attack is entitled to the same benefits as one who suffers a mental breakdown or loses a limb. Thus, the payments are not computed with reference to the nature of the injury. [Id. at 720.] We refused to accept the taxpayer’s argument that payment for any injury that permanently robs an individual of his principal means of livelihood should qualify for the section 105(c) exclusion. We stated: We think that the overall scheme of section 105(c) is aimed at providing tax relief to persons who suffer serious, permanent physical injury and receive compensation because of it. The fact that a person may have also lost wages or suffered a diminution of earning capacity because of the injury is irrelevant. * * * [Id.; emphasis added.] In Beisler v. Commissioner, 814 F.2d 1304 (9th Cir. 1987), affg. T.C. Memo. 1985-25, the Court of Appeals for the Ninth Circuit affirmed a decision of ours based on our finding that line-of-duty disability payments received on account of a career-Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
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