- 4 - Petitioner contends that the unreported portion of his JROTC pay represents "qualified military benefits" that are excludable from gross income pursuant to section 134 and 10 U.S.C. sec. 2031(d) (1994). Petitioner relies on the statutes and Department of Defense (DOD) Directive No. 1205.13 (Dec. 26, 1995), which provide that the total compensation received by a retiree- instructor is to be equal to the difference between retired pay and active duty pay plus "allowances" that the retiree-instructor would receive if ordered to active duty. He proposes that the statute and the DOD directive establish "equitable parity" in the compensation of retired and active duty instructors. Petitioner then argues for an exclusion from his income equal to the sum of the allowances received by active duty members of his rank. Otherwise, according to petitioner, the disposable income that he would receive as a JROTC instructor would be less than that of an active duty officer performing identical services. The issues petitioners raise have already been addressed by this Court. See Lyle v. Commissioner, 76 T.C. 668 (1981), affd. without published opinion 673 F.2d 1326 (5th Cir. 1982); Bynam v. Commissioner, T.C. Memo. 2001-142; Tucker v. Commissioner, T.C. Memo. 1999-373. In Lyle v. Commissioner, supra, the Court held that retired military personnel may not rely on 10 U.S.C. sec. 2031(d) to exclude from income salary received as a JROTC instructor. ThePage: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011