- 2 - his acceptance of the offer for an early separation, and he accepted that offer while in a combat zone. Held: P's severance payment is not excludable from gross income under sec. 112. Cynthia L. Mire, for petitioner. William Henck, for respondent. OPINION GERBER, Judge: Respondent, by means of a statutory notice of deficiency, determined an income tax deficiency of $10,038 and sections 6651(a)(1)1 and 6654(a) additions to tax in the amounts of $2,495 and $435, respectively, for petitioner's 1992 taxable year. Respondent has conceded that petitioner is not liable for the additions to tax. The remaining issue for our consideration is whether the special separation payment to which petitioner became entitled while serving in a combat zone is excludable from petitioner's gross income under section 112. Background This case was submitted fully stipulated pursuant to Rule 122. Petitioner, Ralph F. Waterman, served in the U.S. Navy for 14 years and 3 months as an enlisted person. Petitioner was stationed aboard the U.S.S. America in the Persian Gulf, a 1Unless otherwise indicated, all section references are to the Internal Revenue Code in effect for the year under consideration, and all Rule references are to this Court's Rules of Practice and Procedure.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011