Stanley v. United States

McKAY, Circuit Judge.

Plaintiffs, four former Denver firefighters and police officers and their spouses, seek recovery of federal income taxes paid to the United States. They contend that their income from pensions awarded under Colorado Revised Statutes [C.R.S.] § 31-30-508 and § 31-30-608 1 should have been exempt from federal income taxation pursuant to Internal Revenue Code § 104(a)(1). See 26 U.S.C. § 104(a)(1). After their refund claims were denied by the Internal Revenue Service, all of the plaintiffs filed refund suits which were consolidated by the district court. Almost a year after…