Peter F. & Maureen L. Speltz - Page 13

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          broadly to encompass all gains except those specifically excluded           
          by Congress.  See Commissioner v. Glenshaw Glass Co., 348 U.S.              
          426, 430 (1955).                                                            
               Consistent with this rule, payments by an employer to an               
          employee through accident and health insurance for personal                 
          injuries or sickness are generally included in gross income.                
          Sec. 105(a).  An exception exists, however.  Employees may                  
          exclude from gross income employer-paid “reimbursements” for                
          medical care expenses.  See secs. 105(b), 106(a), 213(d); Schmidt           
          v. Commissioner, T.C. Memo. 2003-325; see also Rev. Rul. 71-588,            
          1971-2 C.B. 91 (sanctioning payments from an employer-spouse to             
          an employee-spouse).8  We must therefore determine whether the              
          exception applies and whether petitioners may exclude benefits              
          from income.                                                                
               To qualify for excludability, benefits must be received                
          under a proper plan, notice or knowledge of the plan must be                
          reasonably available to those covered, and there must be a bona             


               8We are aware that revenue rulings are not binding on this             
          Court or other Federal courts.  Rauenhorst v. Commissioner, 119             
          T.C. 157, 171 (2002); Frazier v. Commissioner, 111 T.C. 243, 248            
          (1998).  The public has a right, however, to rely on positions              
          taken by the Commissioner in published guidance.  Alumax, Inc. v.           
          Commissioner, 109 T.C. 133, 163 n.12 (1997), affd. 165 F.3d 822             
          (11th Cir. 1999); Am. Campaign Acad. v. Commissioner, 92 T.C.               
          1053, 1070 (1989); Nissho Iwai Am. Corp. v. Commissioner, 89 T.C.           
          765, 778 (1987); see also Rev. Proc. 89-14, sec. 7.01(5), 1989-1            
          C.B. 814, 815 (taxpayers may rely on published revenue rulings in           
          determining the tax treatment of their own transactions).                   






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