- 16 - In advancing the foregoing contentions, petitioners misun- derstand and/or misstate the provisions of section 105(b). Section 105(b) on which petitioners rely provides in pertinent part: SEC. 105. AMOUNTS RECEIVED UNDER ACCIDENT AND HEALTH PLANS. * * * * * * * (b) Amounts Expended for Medical Care.-- * * * gross income does not include amounts referred to in subsection (a) if such amounts are paid, directly or indirectly, to the taxpayer to reimburse the taxpayer for ex- penses incurred by him for the medical care (as defined in section 213(d)) of the tax- payer, his spouse, and his dependents * * *. [Emphasis added.] Contrary to petitioners’ contentions, section 105(b) addresses a situation where certain amounts described in section 105(a)15 are paid, directly or indirectly, to a taxpayer to reimburse the taxpayer for the expenses that such taxpayer incurred for the medical care of such taxpayer, such taxpayer’s spouse, and such taxpayer’s dependents. 15Sec. 105(a) provides: (a) Amounts Attributable to Employer Contributions.--Except as otherwise provided in this section, amounts received by an employee through acci- dent or health insurance for personal injuries or sickness shall be included in gross income to the extent such amounts (1) are attributable to contribu- tions by the employer which were not includible in the gross income of the employee, or (2) are paid by the employer.Page: Previous 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 NextLast modified: November 10, 2007