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was deducted from petitioner's wages or included in his gross
income during that period.
Whether the long-term disability benefits are “attributable
to contributions by the employer" within the meaning of both
sections 104(a)(3) and 105(a) depends upon the type of plan
involved and the source of contributions made to the plan. See
secs. 1.104-1(d), 1.105-1, Income Tax Regs. Regardless of the
type of plan involved, however, contributions made to a prior
disability plan outside the relevant look-back period6 are not
taken into account in making the required analysis. See id.
In this case, petitioner made no contributions to his long-
term disability coverage for any period from at least January
1991 through the date of his disability. Although the record is
far from clear regarding the type of long-term disability plan
implemented by the City, the record is clear that petitioner did
not contribute to his long-term disability coverage as required
by section 104(a)(3) and 105(a). See also sec. 1.105-1, Income
Tax Regs.
6Sec. 1.105-1(d) Income Tax Regs., uses different tests to
determine whether, and to what extent, benefit payments are
"attributable to the employer's contributions" for insured plans
using individual policies and group policies. For each plan,
premium payments over a fixed period of time (the look-back
period) are examined, but the look-back period differs depending
on the type of plan involved. In the case of the City's long-
term disability plan, which is a group plan, the look-back period
is limited to 3 years.
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Last modified: May 25, 2011