Woolard v. Commissioner
United States Tax Court
Amount received as readjustment pay by a reserve officer in the U.S. Air Force when involuntarily released from active service is includable in his taxable income in the year received even though there was a possibility that he might have to "repay" 75 percent of that amount through reduction in his retirement pay if he subsequently became eligible for such retirement pay after reenlistment and completion of 20 years of active service.
1Opinion of the Court
OPINION
Eaum:, Judge:
In 1962, petitioner became entitled to, and received, readjustment pay in the amount of $12,300 under the provisions of the Act of June 28, 1962, Public Law 87-509, supra, p. 276, because he was involuntarily released from active duty as a reserve officer in the U.S. Air Force on June 30, 1962, after completion of approximately 16 years of service. That law provided in part, however, that the future retirement pay of such officer who might retire after 20 years of service must be reduced by an amount equal to 75 percent of the readjustment pay, without interest. The reason…
2Cases cited3 opinions
- North American Oil Consolidated v. BurnetSupreme Court of the United States · 1932
- Healy v. CommissionerSupreme Court of the United States · 1953
- Michael Phillips and Sophia Phillips v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1956
3Cited by19 opinions
- Nordberg v. CommissionerUnited States Tax Court · 1982
- Continental Illinois Corp. v. CommissionerUnited States Tax Court · 1989
- Illinois Power Co. v. CommissionerUnited States Tax Court · 1984
- Felman v. CommissionerUnited States Tax Court · 1968
- Berger v. CommissionerUnited States Tax Court · 1981
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