Stanley K. and Sandra B. Evanko - Page 6

                                        - 5 -                                         
          Court concluded that:  (1) The plain language of 10 U.S.C. sec.             
          2031(d) does not authorize an exclusion from gross income for               
          amounts paid to JROTC instructors not on active duty; and (2)               
          JROTC instructors are employed by the local school district and             
          are paid for services, partly funded by the Federal Government,             
          rendered to that school district.                                           
               Petitioner received in 1997 his regular retired pay which he           
          was entitled to whether or not he performed any services.  He               
          received no other compensation or allowances from the Federal               
          Government.  Although it is true that the Federal Government                
          reimburses school districts for one-half the "additional amount"            
          paid to retired officers, the ultimate burden of disbursing funds           
          and establishing compensation scales lies with the employing                
          school.  See 10 U.S.C. sec. 2031(d)(1); Lyle v. Commissioner,               
          supra at 674; Tucker v. Commissioner, supra.  The employing                 
          institution is responsible for issuing compensation checks and              
          Forms W-2, Wage and Tax Statement, to all of its employees.                 
               Because the Federal Government does not assume any kind of             
          employer status, no portion of the compensation that petitioner             
          received as a JROTC instructor could be classified as a                     
          subsistence, quarters, or variable housing allowance from the               
          Armed Forces.  Lyle v. Commissioner, supra at 674.  The statutory           
          provision, in conjunction with the implementing directives issued           
          by DOD, establishes a formula for computing the minimum                     

Page:  Previous  1  2  3  4  5  6  7  8  9  10  Next

Last modified: May 25, 2011