Sewards v. Comm'r
United States Tax Court
P-H received disability retirement payments relating to injuries suffered in the course of his employment. The payment amount was determined, in part, by reference to P-H's length of service. Ps did not report any portion of the payments as taxable. Held: Pursuant to I.R.C. sec. 104(a)(1), the portion of P-H's disability retirement payments determined by reference to his length of service is not excludable from income. Seesec. 1.104-1(b), Income Tax Regs.
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P-H received disability retirement payments relating to injuries suffered in the course of his employment. The payment amount was determined, in part, by reference to P-H's length of service. Ps did not report any portion of the payments as taxable. Held: Pursuant to I.R.C. sec. 104(a)(1), the portion of P-H's disability retirement payments determined by reference to his length of service is not excludable from income. Seesec. 1.104-1(b), Income Tax Regs. Held, further, Ps are not liable for an accuracy-related penalty.
1Opinion of the Court
OPINION
Foley, Judge:
The issues for decision, relating to petitioners’ 2006 joint Federal income tax return, are whether petitioners may exclude certain retirement payments from income and whether petitioners are liable for a section 6662(a)1 accuracy-related penalty. The parties submitted this case fully stipulated pursuant to Rule 122.
Background,
On November 29, 2000, after many years of employment with the Los Angeles County Sheriffs Department (Sheriffs Department), and because of service-connected injuries, Jay Sewards was placed on involuntary medical disability leave. While on disability…
2Cases cited3 opinions
- Martin Ice Cream Co. v. Comm'rUnited States Tax Court · 1998
- Givens v. CommissionerUnited States Tax Court · 1988
- James A. Picard v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1999
3Cited by2 opinions
- Webber v. CommissionerUnited States Tax Court · 2015
- Sewards v. Comm'rUnited States Tax Court · 2012