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Respondent’s Determination
In the notice of deficiency, respondent determined that no
portion of the JROTC pay that petitioner received from HISD is
excludable from income. Accordingly, respondent increased
petitioner’s taxable income by the amount petitioner excluded.
OPINION
We begin our discussion with section 61(a). That section
defines gross income as “all income from whatever source derived,
including (but not limited to) * * * (1) Compensation for
services, including fees, commissions, fringe benefits, and
similar items”. Military pay received by members of the Armed
Forces is also within the scope of section 61(a). See sec. 1.61-
2(a)(1), Income Tax Regs.
Congress may, if it chooses, specifically exempt certain
items from gross income. See Commissioner v. Glenshaw Glass Co.,
348 U.S. 426, 430 (1955). Thus, for example, certain military
compensation, such as compensation received by members of the
Armed Forces serving in combat zones, is excluded from gross
income. See sec. 112. Moreover, military subsistence, uniform
allowances, and other amounts received as commutation of quarters
are excludable from gross income. See sec. 1.61-2(b), Income Tax
Regs.
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