- 3 - the Cold War. In 1980, Ronald A. Weigelt (petitioner) joined the Army and, after completing Officer's Candidate School, was commissioned an officer in the U.S. Army Reserves. Petitioner had planned to make the Army a career. In 1990, the Army began a reduction in force because of the changes in the international situation. On September 30, 1992, petitioner was honorably discharged from the Army and received a special separation benefit (SSB payment) in the amount of $70,070.60. Prior to his discharge, petitioner applied to the Department of Veterans Affairs (DVA) for a disability pension. On January 11, 1994, the DVA notified petitioner by letter that he was entitled to monthly disability compensation benefits commencing November 1, 1992, December 1, 1992, and January 1, 1993, in the respective amounts of $83, $85, and $87. The letter, however, also informed him that You have received a Special Separation Benefit (SSB) payment of $70,070.60 from the Army. We must withhold benefit payments until we recover that full amount. We will then automatically begin monthly payments. On their 1992 joint Federal income tax return, petitioners reported the $70,070.60 SSB payment. Petitioners also claimed a $4,000 deduction for two $2,000 IRA contributions. Upon examination, respondent determined that petitioners had unreported income from wages and interest in the respective amounts of $153 and $83, and that the deduction claimed for the IRA contributions was not allowable. While the 1992 return wasPage: Previous 1 2 3 4 5 6 7 8 9 Next
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