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in 1997. This amount was not reported on petitioner’s 1997
return.
Respondent determined that petitioner failed to report the
disability retirement annuity and a portion of his Social
Security benefits on his 1997 return.
Petitioner argues generally that the disability retirement
annuity is not taxable. In his words: “If I live above the
bridge, if I have to pay tax, let the man under the bridge pay
tax.” He asserts age discrimination in that he claims a 54 year
old does not have to pay tax whereas a 74 year old person must
pay tax. Petitioner does not cite any sections of the Internal
Revenue Code to support his position. We do not find any age
discrimination provisions in the applicable statutes cited below.
It is clear based on the record before us that the disability
retirement annuity is excludable from gross income only if the
requirements of section 104(a)(3) are met.
Section 61(a) provides that, except as otherwise provided by
law, gross income includes all income from whatever source
derived. Exclusions from income are a matter of legislative
grace and are construed narrowly. Commissioner v. Schleier, 515
U.S. 323, 328 (1995). Taxpayers generally bear the burden of
proving that they are entitled to exclude amounts claimed. Rule
142(a)(1); Welch v. Helvering, 290 U.S. 111 (1933). Petitioner
does not contend that the burden of proof is on respondent under
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