Scarce v. Commissioner
United States Tax Court
On January 1, 1941, petitioner was retired from active service for having served 30 years in the United States Navy, and thereafter received the appropriate pay allowances for such service. On June 9, 1941, he was recalled for active service. The Board of Medical Survey reported him not physically qualified, and on August 26, 1941, he was ordered released and restored to his former inactive status and pay allowances.
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On January 1, 1941, petitioner was retired from active service for having served 30 years in the United States Navy, and thereafter received the appropriate pay allowances for such service. On June 9, 1941, he was recalled for active service. The Board of Medical Survey reported him not physically qualified, and on August 26, 1941, he was ordered released and restored to his former inactive status and pay allowances. Held: the Navy pay allowances petitioner received in the taxable years 1944, 1945, and 1946 constituted retirement pay, which is not exempt from taxation under section 22 (b)…
1Opinion of the Court
OPINION.
Leech, Judge:
The question is whether the respective amounts which petitioner received in the pertinent taxable years as pay allowances from the Navy are exempt from tax under section 22 (b) (5) of the Internal Revenue Code.1 Exemptions from taxation do not rest on implication. United States v. Stewart, 311 U. S. 60. Hence petitioner must affirmatively establish that the amounts in question were received as compensation for disability resulting from active service in the armed forces.
The record shows that on January 1,1941, petitioner, having served for 30 years in the United States…
2Cases cited2 opinions
- United States v. StewartSupreme Court of the United States · 1940
- Simms v. CommissionerUnited States Tax Court · 1951
3Cited by10 opinions
- Prince v. United StatesUnited States Court of Claims · 1954
- Carlton v. United StatesUnited States Court of Claims · 1985
- Stipe v. Comm'rUnited States Tax Court · 2011
- Taylor v. Comm'rUnited States Tax Court · 2015
- Howell v. CommissionerUnited States Tax Court · 1981
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