- 4 - Petitioner counters respondent's contentions by maintaining that: (a) Petitioner does not rely on the agreement as a basis for excluding the pension disability payments from income; (b) the City ordinance has been interpreted by the Rhode Island Supreme Court as in the nature of a worker's compensation act; (c) the ordinance has been applied in a manner that is in the nature of a worker's compensation act; and (d) the ordinance has been retroactively amended to "clarify" that it is in the nature of a worker's compensation act. Respondent's determinations are presumed correct, and petitioner has the burden of proving otherwise. Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933). Furthermore, every item of a person's gross income is subject to Federal income tax unless there is a statute or some rule of law that exempts the person or the item from gross income. HCSC-Laundry v. United States, 450 U.S. 1, 5 (1981). Exemption Under Section 104(a)(1) An exclusion from gross income can be found at section 104(a)(1) for "amounts received under workmen's compensation acts as compensation for personal injuries or sickness". Section 1.104-1(b), Income Tax Regs., interprets section 104(a)(1) to exempt amounts received under a worker's compensation act, "or under a statute in the nature of a workmen's compensation act which provides compensation to employees for personal injuries orPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011