- 32 -
in VA Op. Gen. Couns. Prec. 64-90, supra, convince us that both
Congress and the VA understood that distributions from the fund
were not a quid pro quo for labor. In VA Op. Gen. Couns. Prec.
64-90, supra, the general counsel classifies distributions from
the fund as an expense for medical care, chargeable to
appropriations for the VA medical care program. Distributions
from the fund constitute payments of benefits. Because the
distribution here in question constitutes a veterans’ benefit
payable under a law administered by the VA, it is exempt from
taxation under section 38 U.S.C. section 5301(a) (2000) and
section 139(a)(3).
IV. Conclusion
To reflect the foregoing,
Decision will be entered
for petitioner.
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Last modified: November 10, 2007