Disability insurance benefits. This ruling addresses the income tax treatment of short-term and long-term disability benefits under sections 104(a)(3) and 105(a) of the Code.

This procedure provides a method for determining the source of a pension payment to a nonresident alien from a defined benefit plan where the trust forming part of the plan is a trust created or organized in the United States that constitutes a qualified trust under section 401(a) of the Code. Rev. Proc. 2004-7 amplified.