Sleep well tonight -- government lawyers are protecting the revenue, but not that well.
ROOSEVELT WALLACE, Petitioner v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Tax Court Docket No. 4637-03. Filed April 16, 2007.
P participated in a compensated work therapy program administered by the U.S. Department of Veterans Affairs (VA) and, on account thereof, received a distribution of $16,393 from the VA Special Therapeutic and Rehabilitation Activities Fund. R increased P’s gross income by that amount on the ground that the distribution is a payment for services. P claims that the distribution is a tax-exempt veterans’ benefit pursuant to I.R.C. sec. 139(a)(3) and 38 U.S.C. sec. 5301 (2000).
Held: The distribution is a tax-exempt veterans’ benefit.
ROOSEVELT WALLACE, Petitioner v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Tax Court Docket No. 4637-03. Filed April 16, 2007.
P participated in a compensated work therapy program administered by the U.S. Department of Veterans Affairs (VA) and, on account thereof, received a distribution of $16,393 from the VA Special Therapeutic and Rehabilitation Activities Fund. R increased P’s gross income by that amount on the ground that the distribution is a payment for services. P claims that the distribution is a tax-exempt veterans’ benefit pursuant to I.R.C. sec. 139(a)(3) and 38 U.S.C. sec. 5301 (2000).
Held: The distribution is a tax-exempt veterans’ benefit.