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Furthermore, publication 17 clearly states that service
pension payments based on age or length of service are taxable.
It also states that disability retirement pensions based on
percentage of disability are excluded from gross income. The
"Sergeant Jones" example in Publication 17 is inapplicable to
petitioners. That example involves disability retirement pay and
in no way supports petitioners' position. Even if the example in
Publication 17 were applicable, IRS publications are only guides
for taxpayers; statutes, regulations, and judicial decisions will
govern. Zimmerman v. Commissioner, 71 T.C. 367, 371 (1978),
affd. without published opinion 614 F.2d 1294 (2d Cir. 1979);
French v. Commissioner, T.C. Memo. 1991-417.
Petitioners' final argument is that respondent should not be
allowed to change the treatment of the service pension, because
petitioners relied on advice from IRS personnel and were
previously allowed the exclusions. Unfortunately for
petitioners, respondent is not precluded from correcting mistakes
made in the interpretation of the law. Neri v. Commissioner, 54
T.C. 767, 772 (1970).
To the extent that any of petitioners' other arguments were
not addressed by this Court, we have considered them and find
them to be without merit.
Because a VA disability determination does not convert a
service pension into a disability pension, we find that
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