1.501(c)(9)-6. Voluntary employees' beneficiary
associations; benefits includible in gross income
(a) In general. --Cash and noncash benefits realized by a person
on account of the activities of an organization described in
section 501(c)(9) shall be included in gross income to the extent
provided in the Internal Revenue Code of 1954, including, but
not limited to, sections 61, 72, 101, 104 and 105 of the Code
and regulations thereunder.
(b) Availability of statutory exclusions from
gross income. --The availability of any statutory exclusion
from gross income with respect to contributions to, or the payment
of benefits from, an organization described in section 501(c)(9)
is determined by the statutory provision conferring the exclusion,
and the regulations and rulings thereunder, not by whether an
individual is eligible for membership in the organization or
by the permissibility of the benefit paid. Thus, for example,
if a benefit is paid by an employer-funded organization described
in section 501(c)(9) to a member who is not an "employee",
a statutory exclusion from gross income that is available only
for "employees" would be unavailable in the case of
a benefit paid to such individual. Similarly, the fact that,
for example, under some circumstances educational benefits constitute
"other benefits" does not of itself mean that such
benefits are eligible for the exclusion of either section 117
or section 127 of the Code. [Reg. §1.501(c)(9)-6.]
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