- 6 - the Federal tax treatment of Social Security benefits that are received by various taxpayers who may or may not be eligible to receive workers’ compensation benefits. We acknowledge that Mrs. Flores applied for Social Security benefits only because she was obliged to do so under the terms of her long-term disability policy. We also acknowledge that if Mrs. Flores had not been so obliged, and if she had not actually applied for Social Security benefits, then her workers’ compensation benefits would not have been subject to Federal income tax. See sec. 104(a)(1). Under the circumstances, we can appreciate petitioners’ dismay. Nevertheless, as the Supreme Court of the United States has instructed, we are dutybound to apply the law as written by the Congress to the facts as they occurred and not as they might have occurred. See Commissioner v. Natl. Alfalfa Dehydrating & Milling Co., 417 U.S. 134, 148-149 (1974). In view of the foregoing, we hold for respondent on the legal issue presented.4 Reviewed and adopted as the report of the Small Tax Case Division. 4 We also note that respondent’s application of sec. 86 is mathematically correct.Page: Previous 1 2 3 4 5 6 7 8 Next
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