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
JAY SEWARDS AND FRANCES SEWARDS, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Sewards v. Comm'r
Docket No. 24080-08.
United States Tax Court
138 T.C. 320; 2012 U.S. Tax Ct. LEXIS 16; 138 T.C. No. 15;
April 2, 2012, Filed
Decision will be entered under Rule 155.
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…
2Cases cited4 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
- Sewards v. Comm'rUnited States Tax Court · 2012