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of a wage continuation plan and are therefore nontaxable pursuant
to section 105(d).
Pursuant to section 105(d), during years for which it was in
effect, payments made under wage continuation plans could be
excluded from gross income under certain conditions. Section
105(d), however, was repealed, effective for taxable years after
1983 by the Social Security Act Amendments of 1983, Pub. L.
98-21, sec. 122(b), 97 Stat. 85.
Finally, petitioner contends that the IRS refunded his taxes
for prior years after he filed an amended return in 1987 and that
by such action the IRS implicitly recognized that the MetLife
payments were nontaxable. We do not agree. Petitioner has
failed to establish the reason for refunds he received in prior
years. However, it is well established that even if petitioner
had presented proof that respondent may have overlooked or
accepted the tax treatment of certain items in previous years,
respondent is not precluded from correcting that error in
subsequent years with respect to the same taxpayer. See Rose v.
Commissioner, 55 T.C. 28, 32 (1970).
At the conclusion of the trial, the Court instructed
respondent to contact MetLife in order to get an accurate
accounting of disability benefits paid to petitioner during the
1995 taxable year. In an apparent answer to respondent’s query,
MetLife sent petitioner a Form W-2c, Statement of Corrected
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