Berger v. Commissioner
United States Tax Court
After completing more than 6 years of military service, petitioner was discharged on Sept. 10, 1973, from the U.S. Army pursuant to a reduction-in-force program.
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After completing more than 6 years of military service, petitioner was discharged on Sept. 10, 1973, from the U.S. Army pursuant to a reduction-in-force program. At that time, petitioner received from the Government $ 14,511 in readjustment pay as authorized by 10 U.S.C. sec. 687. On Jan. 16, 1974, petitioner received a disability rating from the Veterans' Administration entitling him to disability compensation, the payments of which were subject to deduction of 75 percent of the readjustment pay received. Held: Petitioner must include in his 1973 gross income the entire $ 14,511 readjustment…
1Opinion of the Court
OPINION
Scott, Judge:
Respondent determined a deficiency in the joint Federal income tax of William E. Berger and Karen G. Berger1 in the amount of $2,670.22 for calendar year 1973. The issue for decision is whether under section 104(a)(4), I.R.C. 1954,2 petitioner is entitled to exclude from gross income any portion of the 1973 lump-sum readjustment pay that he received from the U.S. Army upon his involuntary discharge.
All of the facts have been stipulated and are found accordingly.
William E. Berger (petitioner) and Karen G. Berger, husband and wife, who resided in Houston, Tex., at the time…
2Cases cited4 opinions
- Commissioner v. Glenshaw Glass Co.Supreme Court of the United States · 1955
- Woolard v. CommissionerUnited States Tax Court · 1966
- Zebulon L. Strickland v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1976
- Felman v. CommissionerUnited States Tax Court · 1968
3Cited by5 opinions
- Palm v. United StatesDistrict Court, M.D. Alabama · 1995
- St. Clair v. United StatesDistrict Court, E.D. Virginia · 1991
- Custis v. CommissionerUnited States Tax Court · 1982
- Neil v. CommissionerUnited States Tax Court · 1996
- Berger v. CommissionerUnited States Tax Court · 1981