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Petitioner believes that the pension trust payments may be
excludable from gross income because of information he received
in a letter from the pension trust stating:
since you are receiving these benefits due to a
disability and are under the retirement age of sixty-
five, these benefits may be excludable from gross
income to the extent that such amounts are allowed by
the Internal Revenue Service. At age sixty-five, the
benefits will be taxable as ordinary income.
However, the language in the letter correlates to section
105(d).2 During the years section 105(d) 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repealed, effective for taxable years after 1983, by the Social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 cites two cases, Winter v. Commissioner,
303 F.2d 150 (3d Cir. 1962), affg. 36 T.C. 14 (1961), and Jackson
v. Commissioner, 28 T.C. 36 (1957), in support of his argument
that the pension trust amounts are excludable from gross income.
After reviewing the cases, we conclude that each is clearly
distinguishable. Winter v. Commissioner, supra, interprets
2 SEC. 105(d) Certain Disability Payments.–
(1) In General.--In the case of a taxpayer who–
(A) has not attained age 65 before the close of
the taxable year, and
(B) retired on disability and, when he retired,
was permanently and totally disabled, gross income does not
include amounts referred to in subsection (a) if such
amounts constitute wages or payments in lieu of wages for a
period during which the employee is absent from work on
account of permanent and total disability.
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