§122 — Certain reduced uniformed services retirement pay

157 cases·20 followed·12 distinguished·2 criticized·1 limited·4 overruled·118 cited—13% support

Statute Text — 26 U.S.C. §122

(a)General rule

In the case of a member or former member of the uniformed services of the United States, gross income does not include the amount of any reduction in his retired or retainer pay pursuant to the provisions of chapter 73 of title 10, United States Code.

(b)Special rule

(1)Amount excluded from gross income

In the case of any individual referred to in subsection (a), all amounts received as retired or retainer pay shall be excluded from gross income until there has been so excluded an amount equal to the consideration for the contract. The preceding sentence shall apply only to the extent that the amounts received would, but for such sentence, be includible in gross income.

(2)Consideration for the contract

For purposes of paragraph (1) and section 72(n), the term “consideration for the contract” means, in respect of any individual, the sum of—

(A)

the total amount of the reductions before

January 1, 1966

, in his retired or retainer pay by reason of an election under chapter 73 of title 10 of the United States Code, and

(B)

any amounts deposited at any time by him pursuant to section 1438 or 1452(d) of such title 10.

Treasury Regulations

Treas. Reg. §Treas. Reg. §1.122-1 Applicable rules relating to certain reduced uniformed services retirement pay
Treas. Reg. §Treas. Reg. §1.122-1(a) §1.122-1(a)
Treas. Reg. §Treas. Reg. §1.122-1(b) §1.122-1(b)
Treas. Reg. §Treas. Reg. §1.122-1(c) Special rules.
Treas. Reg. §Treas. Reg. §1.122-1(d) Examples with respect to the Retired Serviceman's Family Protection Plan.
Treas. Reg. §Treas. Reg. §1.122-1(e) Principles applicable to the Survivor Benefit Plan.
Treas. Reg. §Treas. Reg. §1.122-1(i) An election made under the Retired Serviceman's Family Protection Plan (10 U.

157 Citing Cases

OVERRULED Edward A. Robinson, III & Diana R. Robinson, Petitioners 119 T.C. No. 4 · 2002

In Reise we thereupon overruled Aaron and reaffirmed the position we took in Polk that the interest on the tax underpayment was attributable to the taxpayer’s trade or business.

OVERRULED James E. & Cheryl L. Redlark, Petitioner 106 T.C. No. 2 · 1996

We applied the rationale of Polk and Standing, and we overruled Aaron as an improper and incorrect construction of section 122(d)(5) of the 1939 Code.4 Id.

FOLLOWED James Ramone Taylor, Petitioner · 2015

Section 122 provides for an exclusion for the amount ofany reduction in an individual's military retirement pay pursuant to the individual's survivor's annuity election.

FOLLOWED Omar J. Nasir, Petitioner T.C. Memo. 2011-283 · 2011

The offer-in-compromise was a 24-mont short-term periodic payment offer made pursuant to section 122(c) (1) (B).

FOLLOWED Bruce A. & Donna M. Rice, Petitioner T.C. Memo. 2009-142 · 2009

We hold that the excess lots were-held for investment purposes and the proceeds are capital gains and losses .

James Ramone Taylor, Petitioner · 2017

ection with this case. 3The Court held a telephone conference with the parties on June 29, 2016, to clarify the issues in the case. Petitioner conceded the military retirement pay at issue was not excludable from gross income under sec. 104(a)(4) or sec. 122. Respondent conceded the accuracy-related penalty for an underpayment due to a substantial understatement ofincome tax under sec. 6662(a) and (b)(2). The Court issued an order dated June 30, 2016, confirming the sole remaining issue. 3 Backg

Uniband, Inc., Petitioner 140 T.C. No. 13 · 2013

122 (2011) (emphasis added). Uniband does not explain what might trump this statutory provision. Moreover, Uniband was established as a Delaware corporation in 1987 by TMBCI and a third-party not affiliated with TMBCI, and for three years TMBCI held only 51% ofUniband. Thus, TMBCI did not establish Uniband by itself; at its inception Uniband w

Uniband, Inc. v. Commissioner 140 T.C. 230 · 2013

122 (2011) (emphasis added). Uniband does not explain what might trump this statutory provision. Moreover, Uniband was established as a Delaware corporation in 1987 by TMBCI and a third party not affiliated with TMBCI, and for three years TMBCI held only 51% of Uniband. Thus, TMBCI did not establish Uniband by itself; at its inception Uniband

Alden J. & Nancy E. Appleton, Petitioner T.C. Memo. 2010-225 · 2010

Bank of San Diego, 48 P.2d 39 (Cal. 1935); Cal. Natl. Bank of Sacramento v. El Dorado Lime & Minerals Co., 2 P.2d 785, 786 (Cal. 1931); H.D. Roosen -Co. v. Pac. Radio Publq. Co., 11 P.2d 873, 876 (Cal. Ct. App. 1932); see also 75 C.J.S.,.Receivers, sec. 122 (2002). While a debtor's assets are in receivership, creditors are prohibited from taking any action that would interfere with a receiver's possession or - 4 - control of the assets, but creditors are permitted.to take action that does not i

Electronic Arts, Inc. and Subsidiaries, Petitioner 118 T.C. No. 13 · 2002

122(c) of the Act. The Internal Revenue Code of 1954 substituted for this a formula deduction resulting in a 14- percentage-point tax rate reduction. See sec. 922, I.R.C. 1954. The WHTC provisions, I.R.C. 1954 secs. 921 and 922, were repealed by sec. 1052(b) of the Tax Reform Act of 1976, Pub. L. 94-455, 90 Stat. 1520, 1648. Several opinions o

Electronic Arts Puerto Rico, Inc., Petitioner 118 T.C. No. 13 · 2002

Electronic Arts, Inc. v. Commissioner 118 T.C. 226 · 2002

122(c) of the Act. The Internal Revenue Code of 1954 substituted for this a formula deduction resulting in a 14-percentage-point tax rate reduction. See sec. 922, I.R.C. 1954. The WHTC provisions, secs. 921 and 922, I.R.C. 1954, were repealed by section 1052(b) of the Tax Reform Act of 1976, Pub. L. 94-455, 90 Stat. 1520, 1648. Several opinion

James A. Rochelle, Petitioner 116 T.C. No. 26 · 2001

We would not be faithful to the statutory scheme, as revealed by the words employed, if we gave “paid or accrued” a different meaning for the purposes of section 122(d)(6) [I.R.C.

Rochelle v. Commissioner 116 T.C. 356 · 2001

We would not be faithful to the statutory scheme, as revealed by the words employed, if we gave “paid or accrued” a different meaning for the purposes of section 122(d)(6) [I.R.C.

Benjamin B. & Dorina Micorescu, Petitioner T.C. Memo. 1998-398 · 1998

286, 343, current version at 42 U.S.C. secs. 1396-1396v (1994). It provides medical assistance for certain low-income people who meet specific eligibility criteria. Medicare is Federal health insurance for the aged and disabled under tit. XVIII of the SSA, secs. 1801-1815, 79 Stat. 291-297, current version at 42 U.S.C. secs. 1395

Theodore Halper, Incompetent; Valerie Halper & Wayne Halper, Co-Plenary Guardians, Petitioners T.C. Memo. 1997-58 · 1997

ny or affidavits alleging any intent by Bergman to mislead. 3 Generally, the loss of capacity by a principal has the same effect upon the authority of the agent during the period of incapacity as has the principal's death. 1 Restatement, Agency 2d, sec. 122 (1957). - 9 - See also Kuder v. United Natl. Bank, 497 A.2d 1105, 1108 (D.C. App. 1985); In re Berry's Estate, 329 N.Y.S.2d 915, 916 (N.Y. Sur. 1972); cf. In re Estate of Head, 94 N.M. 656, 615 P.2d 271, 274 (App. 1980) (trial court's finding

Robinson v. Commissioner 119 T.C. 44 · 2002

Redlark v. Commissioner 106 T.C. 31 · 1996

Glen Raven Mills, Inc. v. Commissioner 59 T.C. 1 · 1972

Consolidated-Hammer Dry Plate & Film Co. v. Commissioner 49 T.C. 153 · 1967

Reise v. Commissioner 35 T.C. 571 · 1961

Virginia Metal Products, Inc. v. Commissioner 33 T.C. 788 · 1960

Cluck v. Commissioner 29 T.C. 7 · 1957

Gramm Trailer Corp. v. Commissioner 26 T.C. 689 · 1956

House-O-Lite Corp. v. Commissioner 24 T.C. 720 · 1955

Lagreide v. Commissioner 23 T.C. 508 · 1954

Flory Milling Co. v. Commissioner 21 T.C. 432 · 1953

Weill v. Commissioner 17 T.C. 318 · 1951

Wier Long Leaf Lumber Co. v. Commissioner 9 T.C. 990 · 1947

McDermott v. Commissioner 3 T.C. 929 · 1944

Rubin v. Commissioner 26 T.C. 1076 · 1956

Allen v. Commissioner 22 T.C. 70 · 1954

Reo Motors, Inc. v. Commissioner 9 T.C. 314 · 1947

Frank Ix & Sons Virginia Corp. v. Commissioner 45 T.C. 533 · 1966

Frederick Steel Co. v. Commissioner 42 T.C. 13 · 1964

A. R. Ruppert Plumbing & Heating Co. v. Commissioner 39 T.C. 284 · 1962

McNutt-Boyce Co. v. Commissioner 38 T.C. 462 · 1962

Budd Co. v. Commissioner 33 T.C. 813 · 1960

H. J. Heinz Co. v. Commissioner 32 T.C. 22 · 1959

Joseph Weidenhoff, Inc. v. Commissioner 32 T.C. 1222 · 1959

F. L. Jacobs Co. v. Commissioner 30 T.C. 1194 · 1958

Maxcy v. Commissioner 26 T.C. 526 · 1956

Towers v. Commissioner 24 T.C. 199 · 1955

Robert Reis & Co. v. Commissioner 20 T.C. 294 · 1953

Lewyt Corp. v. Commissioner 18 T.C. 1245 · 1952

Birch Ranch & Oil Co. v. Commissioner 13 T.C. 930 · 1949

Baruch v. Commissioner 11 T.C. 96 · 1948

Sic v. Commissioner 10 T.C. 1096 · 1948

Monroe Coal Mining Co. v. Commissioner 7 T.C. 1334 · 1946

Greene Motor Co. v. Commissioner 5 T.C. 314 · 1945

Estate of Owen v. Commissioner 104 T.C. 498 · 1995

Western National Mutual Insurance v. Commissioner 102 T.C. 338 · 1994

Plumb v. Commissioner 97 T.C. 632 · 1991

Wise v. Commissioner 78 T.C. 270 · 1982

Zuanich v. Commissioner 77 T.C. 428 · 1981

Erfurth v. Commissioner 77 T.C. 570 · 1981

Kowalski v. Commissioner 65 T.C. 44 · 1975

Kewanee Oil Co. v. Commissioner 62 T.C. 728 · 1974

Gleason Works v. Commissioner 58 T.C. 464 · 1972

Shepard v. Commissioner 57 T.C. 600 · 1972

H. F. Ramsey Co. v. Commissioner 43 T.C. 500 · 1965

Tanner v. Commissioner 45 T.C. 145 · 1965

Bolnick v. Commissioner 44 T.C. 245 · 1965

Hambuechen v. Commissioner 43 T.C. 90 · 1964

Fruehauf Trailer Co. v. Commissioner 42 T.C. 83 · 1964

Humacid Co. v. Commissioner 42 T.C. 894 · 1964

State Farming Co. v. Commissioner 40 T.C. 774 · 1963

Julius Garfinckel & Co. v. Commissioner 40 T.C. 870 · 1963

Federal Cement Tile Co. v. Commissioner 40 T.C. 1028 · 1963

Huyler's v. Commissioner 38 T.C. 773 · 1962

Wood v. Commissioner 37 T.C. 70 · 1961

F. C. Publication Liquidating Corp. v. Commissioner 36 T.C. 836 · 1961

Butler v. Commissioner 36 T.C. 1097 · 1961

J. G. Dudley Co. v. Commissioner 36 T.C. 1122 · 1961

Little v. Commissioner 34 T.C. 156 · 1960

Urban Redevelopment Corp. v. Commissioner 34 T.C. 845 · 1960

Kent v. Commissioner 35 T.C. 30 · 1960

Kolker Bros. v. Commissioner 35 T.C. 299 · 1960

Pure Transportation Co. v. Commissioner 33 T.C. 899 · 1960

Natatorium Laundry Co. v. Commissioner 33 T.C. 203 · 1959

Nieman v. Commissioner 33 T.C. 411 · 1959

Swisher v. Commissioner 33 T.C. 506 · 1959

Hoguet Real Estate Corp. v. Commissioner 30 T.C. 580 · 1958

Batzell v. Commissioner 30 T.C. 648 · 1958

Elek v. Commissioner 30 T.C. 731 · 1958

Kaecker v. Commissioner 30 T.C. 897 · 1958

Prater v. Commissioner 30 T.C. 1262 · 1958

Ford v. Commissioner 31 T.C. 119 · 1958

Polk v. Commissioner 31 T.C. 412 · 1958

British Motor Car Distributors, Ltd. v. Commissioner 31 T.C. 437 · 1958

Old National Bank in Evansville v. Commissioner 28 T.C. 1075 · 1957

Emerson Electric Manufacturing Co. v. Commissioner 28 T.C. 1090 · 1957

Patten Fine Papers, Inc. v. Commissioner 27 T.C. 772 · 1957

LeDanois Land & Stone Co. v. Commissioner 27 T.C. 803 · 1957

Weinstein v. Commissioner 29 T.C. 142 · 1957

Corey v. Commissioner 29 T.C. 360 · 1957

Townend v. Commissioner 27 T.C. 99 · 1956

Standard Hosiery Mills, Inc. v. Commissioner 27 T.C. 525 · 1956

Rothbart v. Commissioner 26 T.C. 680 · 1956

Lucky Lager Brewing Co. v. Commissioner 26 T.C. 836 · 1956

Stern & Stern Textiles, Inc. v. Commissioner 26 T.C. 1000 · 1956

Vischia v. Commissioner 26 T.C. 1027 · 1956

H. Fendrich, Inc. v. Commissioner 25 T.C. 262 · 1955

James E. Caldwell & Co. v. Commissioner 24 T.C. 597 · 1955

Schwarcz v. Commissioner 24 T.C. 733 · 1955

Claremont Waste Manufacturing Co. v. Commissioner 24 T.C. 1087 · 1955

Aluminum Co. of America v. Commissioner 23 T.C. 189 · 1954

Pebble Springs Distilling Co. v. Commissioner 23 T.C. 196 · 1954

American Well & Prospecting Co. v. Commissioner 23 T.C. 503 · 1954

Goble v. Commissioner 23 T.C. 593 · 1954

Trinco Industries, Inc. v. Commissioner 22 T.C. 959 · 1954

North Star Woolen Mill Co. v. Commissioner 22 T.C. 1237 · 1954

Girard Trust Corn Exchange Bank v. Commissioner 22 T.C. 1343 · 1954

Aaron v. Commissioner 22 T.C. 1370 · 1954

Burns v. Commissioner 21 T.C. 857 · 1954

Diamond A Cattle Co. v. Commissioner 21 T.C. 1 · 1953

Kittle v. Commissioner 21 T.C. 79 · 1953

Hunter Manufacturing Corp. v. Commissioner 21 T.C. 424 · 1953

Cunningham v. Commissioner 20 T.C. 65 · 1953

Frank G. Wikstrom & Sons, Inc. v. Commissioner 20 T.C. 359 · 1953

Niagara Searchlight Co. v. Commissioner 20 T.C. 745 · 1953

Louis M. v. Commissioner 17 T.C. 1450 · 1952

Oahu Beach & Country Homes, Ltd. v. Commissioner 17 T.C. 1472 · 1952

Jefferson Amusement Co. v. Commissioner 18 T.C. 44 · 1952

Guggenheimer v. Commissioner 18 T.C. 81 · 1952

Farmers Creamery Co. of Fredericksburg v. Commissioner 18 T.C. 241 · 1952

Luton v. Commissioner 18 T.C. 1153 · 1952

Redpath v. Commissioner 19 T.C. 470 · 1952

Smith v. Commissioner 17 T.C. 135 · 1951

Packer Publishing Co. v. Commissioner 17 T.C. 882 · 1951

A. Finkenberg's Sons, Inc. v. Commissioner 17 T.C. 973 · 1951

Estate of Byrne v. Commissioner 16 T.C. 1234 · 1951

Sage v. Commissioner 15 T.C. 299 · 1950

Pabst Air Conditioning Corp. v. Commissioner 14 T.C. 427 · 1950

Bond v. Commissioner 14 T.C. 478 · 1950

Foundation Co. v. Commissioner 14 T.C. 1333 · 1950

Winter & Co. v. Commissioner 13 T.C. 108 · 1949

Standard Paving Co. v. Commissioner 13 T.C. 425 · 1949

Lehigh Valley Railroad v. Commissioner 12 T.C. 977 · 1949

Commodores Point Terminal Corp. v. Commissioner 11 T.C. 411 · 1948

Cambria Collieries Co. v. Commissioner 10 T.C. 1172 · 1948

Merrill v. Commissioner 9 T.C. 291 · 1947

Frank Trust of 1931 v. Commissioner 8 T.C. 368 · 1947

Winship v. Commissioner 8 T.C. 744 · 1947

Morley v. Commissioner 8 T.C. 904 · 1947

Tower Building Corp. v. Commissioner 6 T.C. 125 · 1946

Butler Consolidated Coal Co. v. Commissioner 6 T.C. 183 · 1946

Virgilia Mining Corp. v. Commissioner 7 T.C. 385 · 1946

Louisiana Delta Hardwood Lumber Co. v. Commissioner 7 T.C. 994 · 1946

Camp Wolters Land Co. v. Commissioner 5 T.C. 336 · 1945

Estate of Makransky v. Commissioner 5 T.C. 397 · 1945

Moore, Inc. v. Commissioner 4 T.C. 404 · 1944

Spookyworld, Inc. v. Town of Berlin 346 F.3d 1 · Cir.

Family Winemakers of California v. Jenkins 592 F.3d 1 · Cir.

Citizens Coal v. EPA · Cir.

United States v. E.I. DuPont De Nemours & Co. 432 F.3d 161 · Cir.

Citizens Coal Council and Kentucky Resources Council, Inc. v. United States Environmental Protection Agency 447 F.3d 879 · Cir.

§122 — Certain reduced uniformed services retirement pay

157 Citing Cases

New cases, delivered.