Wesley T. and Ruth T. Enloe - Page 10

                                        - 9 -                                         
               In addition, the terms of the pension plan demonstrate that            
          petitioner's benefits were computed solely on the basis of his              
          length of service and salary and not on the basis of his                    
          disability.  Therefore, the conditions of section 105(c)(2) are             
          not met.  See Hines v. Commissioner, 72 T.C. 715, 720 (1979)                
          (denying section 105(c) treatment to incapacitated pilot where              
          the amount of the distribution was not based on the nature of his           
          injury); see also Gordon v. Commissioner, 88 T.C. 630, 640-641              
          (1987); Laverty v. Commissioner, 61 T.C. 160, 167 (1973), affd.             
          per curiam 523 F.2d 479 (9th Cir. 1975).                                    
               The Court finds that petitioner received pension payments              
          and did not receive payments from an accident or health plan or             
          through an accident or health insurance agreement.  The Court               
          further finds that even if the pension plan did operate as an               
          accident or health plan, or accident or health insurance, the               
          payments to petitioner were not computed with reference to the              
          nature of his injury.                                                       
               Respondent's determination that petitioners must include in            
          income the pension payments and Social Security disability                  
          payments made to petitioner is sustained.                                   
               Reviewed and adopted as the report of the Small Tax Case               
          Division.                                                                   
                                                  Decision will be entered            
          for respondent.                                                             






Page:  Previous  1  2  3  4  5  6  7  8  9  10  

Last modified: May 25, 2011