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It is our obligation to apply the law to the facts of this
case, and the fact that the Commissioner may have treated a
taxpayer differently in another year does not change our
obligation. Malinowski v. Commissioner, 71 T.C. 1120, 1128
(1979); Robinson v. Commissioner, T.C. Memo. 1996-154.
Section 61(a) provides that, except as otherwise provided,
gross income includes all income from whatever source derived.
The Supreme Court has reiterated the sweeping scope of section
61. Commissioner v. Banks, 543 U.S. 426 (2005); Commissioner v.
Schleier, 515 U.S. 323, 327 (1995); Commissioner v. Glenshaw
Glass Co., 348 U.S. 426, 429-431 (1955). Section 104, in
contrast, provides an exclusion with respect to compensation for
injuries or sickness. Such exclusions are construed narrowly.
Commissioner v. Schleier, supra at 328. One of the conditions of
excludability, relevant in this case, is that the amounts
received through accident or health insurance for personal
injuries or sickness must not be amounts received by an employee,
to the extent such amounts are either attributable to
contributions of the employer and not includable in income of the
employee or are paid by the employer. There is no evidence in
this case that petitioner satisfies the conditions of section
104(a)(3).
Section 105(a) provides that amounts received by an employee
through accident or health insurance for personal injuries or
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