- 2 -
Respondent determined a deficiency of $2,842 in petitioners’
1999 Federal income tax. The issue is whether petitioners2 may
exclude from gross income payments received for unused vacation
and sick leave. Petitioners resided in Penn Valley, California,
at the time the petition was filed.
The facts are not in dispute, and the issue is primarily one
of law.3 Petitioner terminated his employment with the County of
Los Angeles in July 1999 for a new position as a pilot for
Skywest Airlines. Because of the suddenness of his employment
change, petitioner was unable to use accrued vacation and sick
leave he had earned as an employee of the County of Los Angeles.
Thus, he received a $10,170 cash payment for the unused benefits.
As reported on their 1999 Forms W-2, Wage and Tax Statement,
petitioners received $103,652 of taxable wages. Petitioner
earned $51,688 and $6,733 from the County of Los Angeles and
Skywest Airlines, respectively, and petitioner Jane Haregewoin
Donohoe earned $45,231 from the State of California.
2 Petitioner Jane Haregewoin Donohoe did not appear at the
trial and did not execute the stipulation of facts. With respect
to her, we will dismiss this case for failure to prosecute. See
Rule 123(b). The decision, when entered, will be in the same
amount as ultimately determined against petitioner Robert Matthew
Donohoe. In the opinion, references to petitioner are to Robert
Matthew Donohoe.
3 Sec. 7491, concerning burden of proof, has no bearing on
this case.
Page: Previous 1 2 3 4 5 6 7 Next
Last modified: May 25, 2011