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filed by petitioner for 2002 and that no taxes were paid.
Respondent has shown that the substitute return filed on behalf
of petitioner for 2002 met the requirements of section 6020(b).
See infra p. 24. Therefore, respondent has met the burden of
production under section 7491(c). See Higbee v. Commissioner,
116 T.C. 438, 446-447 (2001).
Disability Benefit Payments
The benefits in dispute in this case were paid pursuant to a
policy obtained through petitioner’s employer. Section 61(a)
includes in gross income “all income from whatever source
derived”, unless otherwise provided. Section 105(a) provides
that amounts received by an employee through accident or health
insurance are includable in the gross income of the employee to
the extent such amounts are attributable to contributions by the
employer that were not includable in the gross income of the
employee or are paid by the employer. Therefore, benefits
received under a plan are includable in petitioner's income
unless the contributions were includable in petitioner's gross
income. Tuka v. Commissioner, 120 T.C. 1, 4 (2003), affd. 85
Fed. Appx. 875 (3d Cir. 2003).
Gross income does not include amounts received through
accident or health insurance for personal injuries or sickness to
the extent such amounts are attributable to contributions by the
employer that were includable in the gross income of the employee
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