- 4 - Petitioner testified that sometime after 1991 an IRS representative told him to stop reporting the MetLife payments on his Federal income tax return because the payments constituted nontaxable income. In accordance with the advice he purportedly received from the IRS, petitioner stopped reporting the payments from MetLife. In 1996, petitioner received a Form W-2, Wage and Tax Statement, from MetLife reporting the amount he had received from MetLife for the 1995 taxable year. Petitioner did not report the 1995 payments from MetLife and did not attach the Form W-2 he received from MetLife to his 1995 return. In the notice of deficiency, respondent determined that petitioner failed to report $72 of taxable wages from General Motors in 1995, and further determined that petitioner should have included $9,633, the entire amount of MetLife’s 1995 payments to petitioner, in gross income under section 105(a) for the 1995 taxable year. Gross income does not include amounts received through accident or health insurance for personal injuries or sickness to the extent such amounts are: (1) Attributable to contributions by the employer which were includable in the gross income of the employee, or (2) paid for by the employee. See sec. 104(a)(3). Section 105(a) provides, however, that amounts received by an employee through accident or health insurance are includablePage: Previous 1 2 3 4 5 6 7 8 Next
Last modified: May 25, 2011