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accident or health insurance for personal injuries must be
included in gross income to the extent such amounts are
attributable to contributions by the employer that were not
includable in the gross income of the employee. Sec. 105(a).
In this case there is nothing in the record that suggests
that the amounts contributed by Consolidated on behalf of Mr.
Smith for the long-term disability insurance that generated the
payments here under consideration were includable in his gross
income. Although he testified that he believed that he might
have contributed a de minimis amount towards the insurance, we do
not find his testimony on the point to be sufficient to support a
finding that he did so. Consequently, we find that section
105(a) rather than 104(a)(3) controls. It follows that
petitioners must include in their 1994 income the amount of long-
term disability payments received by Mr. Smith during that year,
and respondent's determination in this regard is sustained.
To reflect the foregoing and the agreed adjustments,
Decision will be entered
under Rule 155.
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Last modified: May 25, 2011