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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.
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