Legal Document

338 U.S. 258 70 Supreme Court Reporter 19 94 L.Ed. 51 COMMISSIONER OF INTERNAL REVENUEv.CONNELLY et al. Number 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 sustained Commissioner, 8 United States Reports KF6280 A2 U55 848, Appeals reversed, one judge dissenting. 84 U.S.App.D.C. 260, 172, Federal Reporter, 2nd Series 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 Statutes-at-Large 12, amended, 56 1021, 14 Code KF62 307, Annotated KF65 U5 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 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 versus Cohen, 333 411, 68 518, 92 774, held employed department 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 KF105 F3 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 much does exceed $1,500.' These organization are detailed 412 414, 519, 520, 774. See Judge Edgerton, dissenting part, below: '* & N Dec. Immigration Nationality Decisions 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. *'

Classification Label: 11