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Act, 42 U.S.C. secs. 416(i), 423 (1994), as a result of chronic
headaches, labile hypertension, major depressive disorder,
seizure disorder, and sleep apnea.
OPINION
Respondent argues that the entire amount petitioners
received from UNUM in 1992, $150,646, is included in gross income
under section 105(a). Petitioners argue that the lump-sum
payment of $135,000 was not paid under the disability plan and
that as a result the amounts received from UNUM are not taxable
income to them. We agree with respondent.
Section 105(a) provides as follows:
Except as otherwise provided in this section, amounts
received by an employee through accident or health
insurance for personal injuries or sickness shall be
included in gross income to the extent such amounts
* * * are attributable to contributions by the employer
which were not includible in the gross income of the
employee * * *.
Section 105(a), therefore, has several conditions for its
application. First, it applies to “amounts received * * *
through accident or health insurance”. Second, the amounts must
be “for personal injuries or sickness”. Third, the amounts must
be “attributable to contributions by the employer”. Fourth, it
must be the case that the contributions “were not includible in
the gross income of the employee”. In the instant case, there is
no question that the second, third, and fourth conditions have
been met. The concussion petitioner suffered is a personal
injury. Petitioner’s employer, Arch Mineral, funded the
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