- 11 -
contributions by the employer which were not includable in the
gross income of the employee or (B) are paid by the employer.7
Section 105(b) provides an exclusion for amounts paid by an
employer to the taxpayer to reimburse the taxpayer for expenses
for medical care. Medical expense reimbursements are not at
issue in this case, so the exception in section 105(b) does not
apply. Section 105(c) excludes from gross income amounts paid by
an employer to the extent such amounts: (1) Constitute payment
for the permanent loss or loss of use of a member or function of
the body, or the permanent disfigurement of the taxpayer, and (2)
are computed with reference to the nature of the injury without
regard to the period the employee is absent from work. However,
section 105(c) applies to exclude payments from gross income only
if the plan or contract under which such payments are made varies
the amount of the payments according to the type and severity of
the injury suffered by the employee. Rosen v. United States, 829
F.2d 506, 509 (4th Cir. 1987); Beisler v. Commissioner, 814 F.2d
1304, 1307 (9th Cir. 1987), affg. en banc T.C. Memo. 1985-25.
7 Former sec. 105(d) provided a limited exclusion from gross
income for amounts received in lieu of wages prior to attaining
age 65 by completely disabled persons retired on disability.
Sec. 105(d) was repealed by sec. 122(b) of the Social Security
Amendments of 1983, Pub. L. 98-21, 97 Stat. 87, and replaced with
a credit for the permanently and totally disabled for years
beginning after Dec. 31, 1983, provided in sec. 37. Sec. 37 was
subsequently renumbered as sec. 22. Deficit Reduction Act of
1984, Pub. L. 98-369, sec. 471(c)(1), 98 Stat. 484, 826.
Respondent has conceded that petitioner is entitled to a credit
under sec. 22 for the years in issue. See supra note 2.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011