Alton F. Emerson - Page 15




                                       - 15 -                                         
          injuries or sickness is within the meaning of section 104(a)(3).            
          Hence, the provisions in sections 104 and 105 dealing with                  
          amounts received through health insurance are used to determine             
          whether petitioner's disability benefits constitute taxable                 
          income.                                                                     
               Section 105(a) provides:                                               
               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 (1)                
               are attributable to contributions by the employer which                
               were not includible in the gross income of the                         
               employee, or (2) are paid by the employer.                             
          The parties stipulated that petitioner's former employer, ECC               
          International, funded the long-term disability plan and paid all            
          the premiums.  Additionally, petitioner presented no evidence               
          that the sick pay he received from the long-term disability plan            
          maintained by his previous employer was excludable from his gross           
          income.  Therefore, we sustain respondent's determination that              
          the disability payments received by petitioner are includable in            
          his gross income pursuant to section 105(a).                                
          Issue 3.  Whether IRA Distributions Received by Petitioner in               
          Taxable Years 1995 and 1996, as Well as Pension and Annuity                 
          Distributions Received by Petitioner in 1996, Are Includable in             
          Gross Income                                                                
               Annuities and pensions are specifically included in gross              
          income.  See sec. 61(a)(9), (11).  In addition, under section               
          408(d)(1), a distribution from an IRA is generally included in              
          the gross income of the distributee in the year of distribution.            





Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  Next

Last modified: May 25, 2011