TAX COURT OPINION

Case: Anthony LaCarter & Annette LaVerne Dorsey
Docket Number: 20632-04
Judge: Wells
Opinion Type: memo
Filed: 03/22/2006
Pages: 6

T .C . e . Ó06--50 UNITED STATES TAX COURT ANTHONY LaCARTER DORSEY AND ANNETTE LaVERNE DORSEY, Petitioners v. COMMISSIONER OF rINTERNAL',REVENUE U.Respondent Docket No. 20632-04. Filed March 2.2, 2006.. Anthony_ LaOarter ,Dorsey and Annette LaVerne Dorsey, pro se @ ·. Natasha.V. JChevalier, for-respondenta - . ., 2 MEMORANDUM,OPINION . WELLS, Judge: Respondent determined a deficiency of $2, 092 in petitioners' Federal decieee>'. . income t BX for 2 portion q is wheth 2 Det ° h ' O lo " # ICE CAIs. s,erJuna T.C. Memo. 2006-50 UNITED STATES TAX COURT ANTHONY LaCARTE1 DORSEY AND ANNETTE LaVERNE DORSEY, Petitioners v. COMMISSIONER OF INTERNAL REVENUE,. .Respondent Docket No. 20632-04. Filed March 22, 2006. Anthony LaCarter .Dorsey and Annette LaVerne Dorsey, pro se. Natasha.V. Chevalier, for respondent. MEMORANDUM OPINION . WELLS, Judge: Respondent determined a deficiency. of $2,092 in petitioners' Federal.income tax for 2002. The issue to be decided is whether petitioners may exclude f;rom gross income a portion of payments that Ant hony LaCarter Dorsey (petitioner) received in his capacity as a Junior.Reserve Officers' Training Corps (JROTC) instructor. Unless otherwise noted, all section we must decide whether paymen ble compensation for - 5 - s that Petitioner received in his capacity as a JRO services rendered to the schoo district or are instead nontaxable allowances ed officers may serve Retired commissione e fo as instructors in JROTC units Pursuant S C sec. 2 provisi°°³ addition to, deta111n (d) Insteadnco oned of f iceepartment concerned of f icers an .* * f the military the secretary of ied instit"t¹° author1Ze . nstructors in to employ , "" e program, retir®ª , * * whose c rs and noa e a pr ved by t eest such emplo of qualificationconcerned and who requ institut 110wing: e , retired member so empire ain r Pay d to receive the memb® reduction by r he member by the of payment of ancerned, of any additi°°ª In the case institution con ount by the ch additional am f the military the secretary at inst it" ° epa tme t concer e salf of the amount paid to the amount equa 3 ( . . . continued) than Persona use vehicle) which-~ member o (A) 1sthe nitormed SeIV1COS Of the United any dependent of such member by reason uch member' s status or service as a member of such uniformed services, and (B) was excludable from gross income on under any provlsion of 1986 law, 9 reg la ion, or administrative practice which in ef f ect on such date (other than a PIOVlsion of this title) - - 7 - Consequently, we conclude that payments petitioner received with respect to his employment as a JROTC instructor constitute compensation for services rendered to the school district. Petitioner's status as a member or former member of the Armed Forces therefore has no effect on the inclusion of such payments in gross income. As stated in Lyle v. Commissioner, supra at 674: "we think that Congress never intended to pay any nontaxable 'allowances' to retired officers serving as Junior ROTC instructors." The provisions of 10 U.S.C. sec. 2031(d)(1) do not authorize the Federal Government to pay nontaxable allowances to retired military personnel serving as JROTC instructors but merely provide a formula for computing the minimum "additional amount" of compensation that such retired instructors may receive from the employing school and the maximum portion of such an additional amount that will be reimbursed.by the Federal Government. Lyle v. Commissioner, supra at 675. Consequently, monthly statements petitioner received from the school district itemizing allowances represented.the amount of reimbursement available to the school district from the Federal Government pursuant to 10 U.S.C. sec. 2031(d)(1) rather than actual allowances excludable from petitioners' gross income. CAL. | T. C. Memo. 2006-50 UNITED STATES TAX COURT ANTHONY LaCARTER DORSEY AND ANNETTE LaVERNE DORSEY, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent Docket No. 20632-04. Filed March 22, 2006. Anthony LaCarter Dorsey and Annette LaVerne Dorsey, pro se. Natasha V. Chevalier, for respondent. MEMORANDUM OPINION . WELLS, Judge: Respondent determined a deficiency of $2,092 in petitioners' Federal income tax for 2002. The issue to be decided is whether petitioners may exclude from gross income a portion of payments that Anthony LaCarter Dorsey (petitioner) received in his capacity as a Junior Reserve Officers' Training Corps (JROTC) instructor. Unless otherwise noted, all section - 3 - Federal Government with respect to the school district's employment of petitioner as a JROTC instructor and that petitioner received from the school district monthly statements itemizing the aforementioned allowances. Additionally, petitioners testified that during respondent's audit with respect to a prior tax year an IRS employee instructed them to exclude from gross income allowances for subsistence, housing, and uniforms. (cid:16)042 Respondent contends that only active duty members of the Armed Forces are entitled to exclude the allowances in issue. Because petitioner was not an active duty member of the Armed Forces during 2002, respondent contends that petitioners are not entitled to exclude from gross income allowances for subsistence, housing, and uniforms. Rather, respondent contends that payments petitioner received with respect to his employment as a JROTC (cid:16)042instructor constitute compensation from the school district for services rendered that must be included in petitioners' gross income for 2002. We first address petitioners' reliance on Publication 3. The authoritative sources of.Federal tax law are statutes, regulations, and judicial decisions. Miller v. Commissioner, 114 T.C. 184, 195 (2000), affd. sub nom. Loveioy v. Commissioner, 293 F.3d 1208 (10th Cir. 2002). Administrative guidance set forth in an informal IRS publication is not an authoritative source of