Ronald J. and Linda Gabriel - Page 10




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               that such disability is attributable to his employment                 
               as a member of the Fire Department, and he shall be                    
               entitled to all of the benefits provided for in Section                
               45-19-1 of the General Laws of Rhode Island, 1956, as                  
               amended, and none of said period of disability shall be                
               deducted from his sick leave entitlement, nor from any                 
               other leave entitlement to which said employee may be                  
               entitled under any other terms or conditions of this                   
               Agreement.                                                             
               Petitioners have not alleged that section 24.4, itself,                
          qualifies as a statute, and, indeed, we find that it does not.              
          See Rutter v. Commissioner, 760 F.2d 466, 468 (2d Cir. 1985)                
          (labor contract does not qualify as a “statute” within the                  
          meaning of section 1.104-1(b), Income Tax Regs), affg. T.C. Memo.           
          1984-525;  Brooks v. Commissioner, supra; McDowell v.                       
          Commissioner, supra.                                                        
               Since section 24.4 is not a worker’s compensation act, and             
          is not a statute in the nature of a workmen's compensation act as           
          required by section 1.104-1(b), Income Tax Regs., payments                  
          received under section 24.4 are not exempt from gross income                
          pursuant to section 104(a)(1).  In addition, like section 10-12,            
          section 24.4 also fails to distinguish between work-related                 
          injuries and nonwork-related injuries as required by section                
          104(a)(1).  The conclusive presumption in section 24.4 that a               
          disabling heart condition is work-related fails to satisfy the              
          requirements of section 104(a)(1) in that respect.  See, e.g.,              
          Take v. Commissioner, supra; Green v. Commissioner, T.C. Memo.              
          1994-264, affd. 60 F.3d 142 (2d Cir. 1995).                                 






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