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the benefits under that program were based upon petitioner’s age
and length of service. Such benefits, therefore, do not qualify
under section 104(a)(1) and section 1.104-1(b), Income Tax Regs.,
quoted above. The benefits paid to petitioner, therefore, are
includable in gross income.
Petitioner contends, however, that the city of San
Francisco, through its representatives, as well as an agent of
the IRS, assured him and his attorney that the benefits under the
nonindustrial disability retirement system were in lieu of
workmen’s compensation benefits, and that the nonindustrial
disability benefits would not constitute gross income. The Court
concludes otherwise because the benefits were based upon age and
length of service and were not based upon personal injuries or
sickness. Whatever advice or representation that was made to
petitioner has no bearing upon the Court’s decision here. The
law is well settled that the Commissioner is not estopped and
cannot be bound by erroneous acts or omissions of his agents or
representations by other parties such as the employer.
Authoritative tax law is contained in statutes, regulations, and
judicial decisions. Zimmerman v. Commissioner, 71 T.C. 367, 371
(1978), affd. without published opinion 614 F.2d 1294 (2d Cir.
1979); Green v. Commissioner, 59 T.C. 456, 458 (1972). A
taxpayer cannot prevail simply because he relied on incorrect
advice from his attorney regarding the tax consequences of the
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