Rev. Rul. 70-217

The purpose of this Revenue Ruling is to update and restate, under the current statute and regulations, the position set forth in I.T. 3447, C.B. 1941-1, 191.

The question presented is whether the monthly payments made under the provisions of section 202 of Title II of the Social Security Act, as amended (42 U.S.C. 402), are includible in the gross income of the recipients.

Section 201 of Title II of the Social Security Act, as amended (referred to herein as the Act), creates on the books of the Treasury of the United States two trust funds; namely, (a) the Federal Old-Age and Survivors Insurance Trust Fund, and (b) the Federal Disability Insurance Trust Fund. These trust funds are made available, pursuant to section 201(h) of the Act, for payment of the insurance benefits provided by section 202 of the Act.

The insurance benefit payments thus provided for include the old-age insurance benefits described in section 202(a); the wife's insurance benefits described in section 202(b); the husband's insurance benefits described in section 202(c); the child's insurance benefits described in section 202(d); the widow's insurance benefits described in section 202(e); the widower's insurance benefits described in section 202(f); the mother's insurance benefits described in section 202(g); the parent's insurance benefits described in section 202(h); and the lump-sum death payments described in section 202(i) of the Act.

It is held that the insurance benefit payments made to individuals under the foregoing provisions of the Act are not includible in the gross income of the recipients.

I.T. 3447 is superseded, since the position set forth therein is restated under current law in this Revenue Ruling.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.