Paul and Alice J. Sidoran v. Commissioner of Internal Revenue

Appellants, Paul and Alice Sidoran, appeal from a decision of the Tax Court finding deficiencies in income tax due in the taxable years 1974 and 1975.

The sole issue is whether appellants are entitled to exclude Paul Sidoran’s Air Force retirement pay from income as “amounts received as a pension, annuity, or similar allowance for personal injuries or sickness resulting from active service in the armed forces of any country.” The tax court found that his retirement was based not on disability, but on length of service, pursuant to 10 U.S.C. § 8911 , and denied the exclusion. The taxpayer contends that he was not eligible to retire for length of service under § 8911, having served only 19 years and 9 months of the required twenty years. In addition, he argues that he was disabled at the time of retirement, as evidenced by a disability rating of forty percent given him by the Veterans Administration upon retirement. We find these arguments unavailing and affirm the tax court’s decision.

Even assuming arguendo that appellant is correct that he had served only 19 years and 9 months of active service, there is ample evidence to support the tax court’s finding that he was retired for…