- 3 -
benefits received in 1997 related to a work-related injury
settlement for prior taxable years. Respondent contends that 85
percent of the Social Security disability benefits received by
petitioner are subject to tax under section 86(a) and that
$14,949 and $5,312 is includable in petitioner’s gross income for
the taxable years 1997 and 1998, respectively.
In certain circumstances, section 7491 places the burden of
proof on respondent with regard to certain factual issues.
Because the facts in this case are undisputed, we find that
section 7491 has no bearing on the determination of the legal
issues before us.
Prior to 1984, certain disability benefits were excludable
from an employee’s gross income under section 105(d). Maki v.
Commissioner, T.C. Memo. 1996-209. However, this section was
repealed, and “since 1984 Social Security disability benefits
have been treated in the same manner as other Social Security
benefits.” Id.; accord Bradley v. Commissioner, T.C. Memo. 1991-
578. Accordingly, we hold that the Social Security disability
payments received by petitioner are subject to tax in the same
manner as other Social Security benefits.
Section 61(a) provides that gross income includes all income
from whatever source derived, unless excludable by a specific
provision of the Code. Moreover, section 86(a) requires the
inclusion of a portion of Social Security benefits in gross
Page: Previous 1 2 3 4 5 6 Next
Last modified: May 25, 2011