[Code of Federal Regulations]
[Title 26, Volume 7]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.501(c)(9)-6]

[Page 26-27]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 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,

[[Page 27]]

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.

[T.D. 7750, 46 FR 1725, Jan. 7, 1981]