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Federal tax law and does not bind the Government. Id. Taxpayers
rely on such publications at their own peril. Id. Consequently,
we will not address petitioners’ contentions regarding
Publication 3 with respect to the availability of the allowances
in issue to JROTC instructors.2
Turning to the applicable statutes, regulations, and
judicial decisions, section 61(a) provides that gross income
includes all income from whatever source derived except as
otherwise provided. Section 1.61-2(b), Income Tax Regs.,
provides that subsistence allowances, uniform allowances, and
other amounts received as commutation of quarters are excluded
from gross income. Furthermore, section 134(a) provides that
gross income shall not include any qualified military benefit.3
2Publication 3 states that the “publication covers the
special tax situations of active members of the U.S. Armed
Forces” and separately lists basic allowances for housing, basic
allowances for subsistence, and uniform allowances as “excluded
items”. As discussed below, however, retired officers do not
receive nontaxable allowances from the Federal Government with
respect to their employment as JROTC instructors. Consequently,
we note that Publication 3 does not support petitioners’
contentions.
3SEC. 134. CERTAIN MILITARY BENEFITS.
(a) General Rule.--Gross income shall not include any
qualified military benefit.
(b) Qualified Military Benefit.--For purposes of this
section--
(1) In general.--The term “qualified military
benefit” means any allowance or in-kind benefit (other
(continued...)
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