Clemens v. C.I.R., 050189 FEDTAX, 19342-85

Docket Nº:19342-85.
Opinion Judge:WRIGHT, JUDGE:
Party Name:GEORGE E. CLEMENS, III and LINDA V. CLEMENS, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Attorney:Robert M. Schaufeld and Wayne J. Schaefer, for the petitioners. Theodore Leighton and Michelle A. Missry, for the respondent.
Case Date:May 01, 1989
Court:United States Tax Court
 
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57 T.C.M. (CCH) 286

GEORGE E. CLEMENS, III and LINDA V. CLEMENS, Petitioners

v.

COMMISSIONER OF INTERNAL REVENUE, Respondent

No. 19342-85.

United States Tax Court

May 1, 1989

Robert M. Schaufeld and Wayne J. Schaefer, for the petitioners.

Theodore Leighton and Michelle A. Missry, for the respondent.

MEMORANDUM FINDINGS OF FACT AND OPINION

WRIGHT, JUDGE:

By notice of deficiency dated April 1, 1985, respondent determined a deficiency of $1,748 in petitioners' Federal income tax for tax year 1983. After concessions by petitioners, the sole issue for decision is whether payments received by petitioner, George E. Clemens, III while he was on sick leave were made under a statute in the nature of a Workmen's Compensation Act and thus excludable from gross income pursuant to section 104(a)(1). [1]

FINDINGS OF FACT

Some of the facts of this case have been stipulated and are so found. The stipulation of facts, together with the exhibits attached thereto, is incorporated herein by this reference.

Petitioners, husband and wife, resided in Deer Park, New York, when they filed their petition. During 1983, petitioner (all references hereafter to petitioner in the singular shall be to George E. Clemens, III) worked as a police officer for the Port Authority of New York and New Jersey (the Port Authority). He has been so employed since May 8, 1972. On September 30, 1983, petitioner suffered injuries in a motor vehicle accident that occurred in the line of duty. These injuries left petitioner unable to work from the time of the accident until January 19, 1984. During this period he received the following payments from the Port Authority:

Date of Pay Stub Amount of Net Pay
October 7, 1983 $ 698.61
October 7, 1983 100.03
October 14, 1983 676.92
October 21, 1983 150.49
November 4, 1983 59.90
November 18, 9183 712.71
December 2, 1983 766.33
December 9, 1983 696.43
December 15, 1983 813.33
Decmeber 30, 1983 991.12
$5,665.87
The Port Authority classified these payments as ‘ sick leave,‘ pursuant to the terms of the employment contract then in force between them and the Port Authority Police Benevolent Association (P.B.A.). Section XVIII, subsection 2 of the Memorandum of Agreement Between The Port Authority of New York and New Jersey and The Port Authority Police Benevolent Association, Inc., for the period from July 3, 1983 to July 27, 1985 (the Agreement) provided that: any Police Officer on sick leave because of an injury incurred in the line of duty will receive payment at his base annual salary rate plus longevity and, as per past practice, all applicable benefits, where necessary, for a period or cumulative periods of absences not to exceed one year resulting from such injury. During the time petitioner was unable to work, he was charged with sick leave pursuant to the requirements of the agreement. During this period, petitioner also continued to accrue employee benefits and to receive longevity payments as required by the agreement. The termination of petitioner's sick leave payments conformed to the requirements of the agreement. The $5,665.87 received by...

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