Introduction›Part I. Rulings and Decisions Under the Internal Revenue Code of 1986
Section 3121.—Definitions
Internal Revenue Bulletin 2006-3 · 2026-10-03 edition · updated 2026-10-04 · United States
26 CFR 31.3121(a)(2)–1: Payments on account of sickness or accident disability, medical or hospital- ization expenses, or death.
T.D. 9233
DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Parts 31 and 32
Sickness or Accident Disability Payments
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Final regulations.
SUMMARY: This document contains final regulations providing guidance regarding the treatment of payments made on account of sickness or accident disability under a workers’ compensation law for purposes of the Federal Insurance Contributions Act (FICA).
DATES: Effective Date : These regulations are effective December 15, 2005.
Applicability Date : These regulations apply to payments on account of sickness or accident disability payments made on or after December 15, 2005.
FOR FURTHER INFORMATION CONTACT: David Ford (202) 622–6040 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
This document contains amendments to 26 CFR parts 31 and 32 under section 3121(a)(2) of the Internal Revenue Code (Code). This section excepts from wages for FICA purposes payments made on account of sickness or accident disability that are received under a “workmen’s compensation law,” hereinafter referred to as a workers’ compensation law.
Proposed regulations (REG–160315– 03, 2005–14 I.R.B. 833) under section 3121(a)(2) were published in the Fed- eral Register (70 FR 12164) on March 11, 2005. No written comments responding to the notice of proposed rulemaking
For a list of bond factor amounts applicable to dispositions occurring during other calendar years, see: Rev. Rul. 98–3, 1998–1 C.B. 248; Rev. Rul. 2001–2, 2001–1 C.B. 255; Rev. Rul. 2001–53, 2001–2 C.B. 488; Rev. Rul. 2002–72, 2002–2 C.B. 759; Rev. Rul. 2003–117, 2003–2 C.B. 1051; Rev. Rul. 2004–100, 2004–2 C.B. 718; and Rev. Rul. 2005–67, 2005–43 I.R.B. 771.
DRAFTING INFORMATION
The principal author of this revenue ruling is David McDonnell of the Office of Associate Chief Counsel (Passthroughs and Special Industries). For further information regarding this revenue ruling, contact Mr. McDonnell at (202) 622–3040 (not a toll-free call).
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