- 8 - 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 thatPage: Previous 1 2 3 4 5 6 7 8 9 Next
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