- 4 - Discussion The parties appear to agree that the plan constitutes an accident or health plan within the meaning of sections 104(a)(3) and 105(a), and we proceed as though it does. Simply stated, the statutory scheme framed by these sections allows a taxpayer to exclude from income amounts received through accident or health insurance plans if: (1) The taxpayer paid for the insurance; or (2) the amounts were attributable to contributions by the taxpayer’s employer that were includable in the taxpayer’s gross income. See sec. 104(a)(3). On the other hand, amounts received by an employee through accident or health insurance for personal injuries must be included in gross income to the extent such amounts are attributable to contributions by the employer that were not includable in the gross income of the employee. See sec. 105(a). Petitioner does not claim that Ingram’s contributions to the plan on his behalf were includable or included in his gross income for any year, and the version of section 106 in effect during the relevant periods suggests that they were not. Instead, petitioner argues that the disability payments are excludable from income because he paid for the applicable insurance coverage. According to petitioner, Ingram withheld amounts from his salary for long-term disability coverage under the plan.Page: Previous 1 2 3 4 5 6 Next
Last modified: May 25, 2011