- 7 - “your permanent disability benefits from 01/01/97 through 10/27/97.” It is unclear from this record whether SCRMA is associated with petitioner’s workers’ compensation claim with the State of California or whether it is associated with Compton Unified’s group insurance plans. Gross income includes all income from whatever source derived, unless excludable by a specific provision of the Internal Revenue Code. Sec. 61(a). One exclusion from gross income can be found at section 104(a)(1) for “amounts received under workmen’s compensation acts as compensation for personal injuries or sickness”. Another exclusion can be found at section 104(a)(3) for amounts received through accident or health insurance for personal injuries or sickness, except if such amounts are (a) attributable to contributions by the employer which were not includable in the gross income of the employee, or (b) are paid by the employer. See also sec. 105(a). Taxpayers reporting income on the cash method of accounting, such as petitioner, must include an item of income for the taxable year in which the item is actually or constructively received. See sec. 451(a); see also Polone v. Commissioner, T.C. Memo. 2003-339; Knoll v. Commissioner, T.C. Memo. 2003-277 (applying this principle in the context of a section 104 case). The record does not support petitioner’s claim for exclusion. Petitioner applied for workers’ compensation benefitsPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011