Rev. Rul. 70-280

The purpose of this Revenue Ruling is to update and restate, under the current statute and regulations, the position set forth in I.T. 3230, C.B. 1938-2, 136.

The question presented is whether the benefit payments received by an individual from a State agency during unemployment periods, pursuant to the Federal and State plan for unemployment compensation, are includible in the gross income of the recipients.

The payments referred to are paid from funds withdrawn by a State from the Federal Unemployment Trust Fund established in the Treasury of the United States by section 904(a), title IX, of the Social Security Act, as amended (42 U.S.C. 1104), in which Fund moneys are deposited by the various States in accordance with the provisions of section 3304(a)(3) of the Internal Revenue Code of 1954.

It is held that the payments on account of unemployment paid by a State agency out of funds received from the Federal Unemployment Trust Fund are not includible in the gross income of the recipients.

I.T. 3230 is superseded, since the position set forth therein is restated under current law in this Revenue Ruling.

¹ Prepared pursuant to Rev. Proc. 67-6, C.B. 1967-1, 576.