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determined with reference to petitioner's "length of service"
within the meaning of section 1.104-1(b), Income Tax Regs., and
are therefore ineligible for the exclusion provided in section
104(a)(1).
Petitioner raises one final argument in his reply brief,
that the phrase "to the extent" in section 1.104-1(b), Income Tax
Regs., permits petitioner to exclude the disability allowance.
Petitioner relies on four revenue rulings: Rev. Rul. 72-44,
1972-1 C.B. 32; Rev. Rul. 80-44, 1980-1 C.B. 34; Rev. Rul. 85-
104, 1985-2 C.B. 52; and Rev. Rul. 85-105, 1985-2 C.B. 53. The
revenue rulings all involve situations where the employee was
paid a base percentage amount in the nature of worker's
compensation if retired for disability, and was paid additional
amounts, over and above the base amount, if the employee had a
sufficient number of years of service. The Revenue Rulings all
held that the base amount was excludable but that the amounts
over and above the base amount were includable because they were
determined by reference to length of service. In the instant
case, however, the allowance that petitioner received that was
not determined by reference to length of service (75 percent of
1-year average compensation) exceeded the allowance that was
determined by reference to length of service (50 percent of 1-
year average compensation). The revenue rulings, therefore, have
no relevance to this case. The payments received by petitioner
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