Rev. Rul. 79-147

ISSUE

Are payments made by the District of Columbia to disabled police officers and fire fighters under section 4-526 of the District of Columbia Code excludable from gross income pursuant to section 104(a)(1) of the Internal Revenue Code of 1954?

FACTS

Section 4-526 of the District of Columbia Code provides that if an individual has completed at least five years of police or fire service and is found by the Mayor to become disabled due to injury received or disease contracted other than in the performance of duty, and the disability precludes further service by the individual with the individual's department, such individual shall be retired on an annuity.

LAW AND ANALYSIS

Section 104(a)(1) of the Code provides that, except in the case of amounts attributable to (and not in excess of) deductions allowed under section 213 (relating to medical, etc., expenses) for any prior taxable year, gross income does not include amounts received under workmen's compensation acts as compensation for personal injuries or sickness.

Section 1.104-1(b) of the Income Tax Regulations provides that the exclusion under section 104(a)(1) of the Code applies not only to amounts received under workmen's compensation acts, but also to amounts received under a statute in the nature of a workmen's compensation act that provides compensation to employees for personal injuries or sickness incurred in the course of their employment.

Section 4-526 of the District of Columbia Code does not provide compensation to employees for injuries or sickness incurred in the performance of their duties. Therefore, section 4-526 is not a statute in the nature of a workmen's compensation act within the meaning of section 1.104-1(b) of the regulations.

HOLDING

Payments made by the District of Columbia, pursuant to section 4-526 of the District of Columbia Code, to disabled police officers and fire fighters are not excludable from the recipients' gross income under section 104(a)(1) of the Code. For the excludability under section 104(a)(1) of payments received by District of Columbia police officers because of injury or illness resulting from the performance of official duties, see Rev. Rul. 75-500, 1975-2 C.B. 44.