- 7 - statute in the nature of a worker’s compensation act pursuant to section 1.104-1(b), Income Tax Regs. Petitioners contend that petitioner received disability pension amounts from the city in accordance with section 104(a)(1) in 1992, or, in the alternative, that amended section 10-12 allows petitioner’s previously received disability pension amounts to be retroactively redesignated and excluded from gross income during the year in issue pursuant to section 104(a)(1). We examine each of petitioners’ contentions in turn. Section 104(a)(1) and Section 1.104-1(b), Income Tax Regs. Section 61(a) provides that gross income includes all income from whatever source derived. Certain income, however, may be specifically excluded from gross income. See sec. 61(b). Under section 104(a)(1), worker’s compensation amounts are excluded from gross income. However, such exclusions have been “strictly construed so as to conform with the general rule that all income is taxable unless it is specifically excluded.” McDowell v. Commissioner, T.C. Memo. 1997-500; see Kane v. United States, 43 F.3d 1446,1449, 1451 (Fed. Cir. 1994); Take v. Commissioner, 804 F.2d 553, 558 (9th Cir. 1986), affg. 82 T.C. 630 (1984). Section 104(a)(1) excludes from gross income “amounts received under workmen's compensation acts as compensation for personal injuries or sickness”. Section 1.104-1(b), Income TaxPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011