Document: 338 U.S. 258 70 S.Ct. 19 94 L.Ed. 51 COMMISSIONER OF INTERNAL REVENUEv.CONNELLY et al. No. 57. Argued Oct. 21, 1949. Decided Nov. 7, Mr. Ellis N. Slack, Washington, D.C., for petitioner. Caesar L. Aiello, respondents. Justice MINTON delivered the opinion of Court. 1 The question we have here is whether respondent William I. Connelly, hereafter referred to as taxpayer, entitled $1,500 exclusion from gross income provided by § 22(b)(13)(A) Internal Revenue Code.1 taxpayer claimed this additional allowance taxable years 1943 and 1944. Commissioner disallowed sum deducted. Tax Court sustained Commissioner, 8 T.C. 848, Appeals reversed, one judge dissenting. 84 U.S.App.D.C. 260, 172, F.2d 877. We granted certiorari. 337 924, 69 1170. 2 On February 19, 1943, was a civil service employee in legal division Coast Guard. that date he enrolled lieutenant commander within six classifications which constituted temporary members Guard Reserve.2 His enrollment under authority Auxiliary Reserve Act enrolling 'persons (including Government employees without pay other than compensation their civilian positions).' 55 Stat. 12, amended, 56 1021, 14 U.S.C. 307, U.S.C.A. 307 note. April 24, 1944, reenrolled his class described 'Coast Civil Service Employees.' 3 After performed duties identical with those had previously performed. At time enrolled, ratng P-5. Later rating raised P-6 rank increased at same commander. He received after employee. overtime employee, deductions were made retirement, subject regulations annual sick leave. If been injured or killed, would benefits United States. still Selective Training Act, 50 U.S.C.A.Appendix, 301 seq. In case sickness disease contracted while on active duty, hospital medical care regular Guard, but dental not included. While duty required wear uniform courtesies due rank. laws, orders disciplinary action. 4 It apparent dual status. limited military status later also carefully so all privileges incident such given just enough enable him effectively carry out duties. All considerations an economic character pertaining employment related 5 Mitchell v. Cohen, 333 411, 68 518, 92 774, held employed department Federal who temporarily Volunteer Port Security Force worked part-time reservist 'exserviceman' meaning Veterans' Preference 851 Looking legislative history statute, found over-shadowing purpose favor real record service. 6 application (172 F. 880) 'long-established criteria—oath office, subjection discipline' acquired thus exclusion. agree some purposes. But tax purposes To come 22(b)(13(A), must 'for commissoned officer.' understand mean if commissioned officer, be seems equally plain served allowances, exclusion.3 As Cohen case, emphasis statute 7 And it clear noted, Committee Merchant Marine Fisheries amendment parenthetical phrase added being 'advisable clarify (enrollment rank) resolve any doubt its applicability specifically providing membership continuance positions receipt thereof.'4 From enactment there no deviation view paid officer. came congressional appropriations allocated positions. scale grade, appropriate retirement. continuing underlined promotion, promotion resulted. Indeed, taxpayer's certificate disenrollment 'Chief Admiralty Maritime Section having status, receiving pay, holding Commander Temporary Member Reserve.' 9 ignored compensated gave effect only facilitate performance wartime.5 Taxpayer's getting job done, compensation. 10 judgment reversed. 11 Reversed. 12 FRANKFURTER DOUGLAS took part consideration decision case. amended 1945, 141(a), 59 571, 26 22(b)(13)(A): '(13) Additional naval personnel. '(A) * officer forces States much does exceed $1,500.' These organization are detailed 412 414, 519, 520, 774. See Judge Edgerton, dissenting part, below: '* I unable, rule exemptions strictly construed, say man did receive officer's 'without (his) positions' 'received officer." 263, 172 page 880. H.R.Rep. 2525, 77th Cong., 2d Sess., (1942). 'would obviate possible impairment right continue entire period members. There will little, any, change nature enrollment.' Office Memorandum 13—43 issued Commandant July states: '6. attention heads offices chiefs divisions invited fact principal reasons induction into establishment obtain homogeneous basis eliminate differences procedure practices applicable personnel engaged exactly duty. *'

Category: 11