-7-
the Navy, or the Secretary of the Air Force, as well as
the Coast Guard. Although petitioner’s [Mr.
Hildebran’s] merchant marine occupation required him to
work in support of the United States Navy and to work
within a recognized combat zone, petitioner did not
serve in the Armed Forces of the United States and,
therefore, is not entitled to exclude any portion of
his wages from gross income under I.R.C. section 112.
In further support of respondent’s position, respondent
points out that
The Tax Court has consistently denied the combat
pay exclusion under I.R.C. section 112 to civilian
employees providing support to the United States mili-
tary. Land v. Commissioner, 61 T.C. 675 (1974); Smith
v. Commissioner, T.C. Memo. 1972-147; Reynolds v.
Commissioner, T.C. Memo. 1972-84; Fagerland v. Commis-
sioner, T.C. Memo. 1971-134. Pilots employed by pri-
vate airlines flying civilian aircraft under contract
with the Department of Defense in support of the United
States military were found not to be members of the
Armed Services and, therefore, not entitled to the
I.R.C. section 112 exclusion. Land, 61 T.C. 675;
Smith, T.C. Memo. 1972-147; Reynolds, T.C. Memo. 1972-
84; Fagerland, T.C. Memo. 1971-134. A taxpayer who has
been issued a Department of Defense identification card
is not necessarily a member of the Armed forces of the
United States. Land, 61 T.C. 675; Smith, T.C. Memo.
1972-147; Reynolds, T.C. Memo. 1972-84; Fagerland, T.C.
Memo. 1971-134. Merchant marines are civilians and are
not members of the Armed Forces of the United States;
therefore, they are not entitled to income exclusion
under I.R.C. section 112. Favero v. Commissioner, T.C.
Memo. 2001-219.
Petitioners counter respondent’s reliance on the foregoing
cases by pointing out certain factual distinctions between those
cases and the instant case. The distinctions between the cases
on which respondent relies and the instant case that petitioners
describe are not material, and petitioners’ reliance on such
distinctions is misplaced.
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