- 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