T.C. Memo. 2002-319
UNITED STATES TAX COURT
RAYMOND J. AND JACQUELYN M. BYRNE, Petitioners v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 130-01. Filed December 30, 2002.
P suffered a permanent disability that arose out
of, and in the course of, his employment as a municipal
court judge. P was awarded a disability retirement
under the Judges’ Retirement Law, Cal. Govt. Code secs.
75060(a) and 75061(a) (West 1993 & Supp. 2002), which
provides for a disability retirement if a judge has
been credited with at least 2 years of judicial service
or “the disability is a result of injury or disease
arising out of and in the course of judicial service.”
P seeks to exclude from gross income under sec.
104(a)(1), I.R.C., the payment P received in 1997. R
argues that the Judges’ Retirement Law is not in the
nature of a workers’ compensation act and the payment
is not excludable.
Held: Under sec. 1.104-1(b), Income Tax Regs.,
gross income does not include amounts received under a
statute in the nature of a workers’ compensation act.
A statute that does not distinguish between work-
related injuries and other types of injuries is not in
the nature of a workers’ compensation act. Rutter v.
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