B-136000, JUL. 28, 1958

B-136000: Jul 28, 1958

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LANGEMAK: REFERENCE IS MADE TO YOUR LETTER OF APRIL 16. THE RECORD SHOWS THAT YOU WERE ASSIGNED TO DUTY AT FORT SHERIDAN. 480 POUNDS WERE TRANSPORTED UPON YOUR REQUEST FROM CHICAGO TO LOS ANGELES BY ALLIED VAN LINES. THE HUGHES AIRCRAFT COMPANY IS ALLOTTED CERTAIN FUNDS FOR USE IN DEFRAYING ESSENTIAL TRANSPORTATION COSTS NECESSARY IN CONNECTION WITH THE PROCUREMENT OF QUALIFIED PERSONNEL. YOU ALLEGE THAT THROUGH NO FAULT OF YOUR OWN YOU WERE UNABLE TO UTILIZE GOVERNMENT TRANSPORTATION FACILITIES FOR TRANSPORTING YOUR EFFECTS. THAT WHEN YOUR EMPLOYER ADDED THE TRANSPORTATION COSTS PAID TO THE ABOVE MENTIONED CARRIER ON YOUR ACCOUNT TO YOUR GROSS INCOME FOR 1956 YOUR FEDERAL INCOME TAXES FOR THE YEAR WERE INCREASED TO THE EXTENT OF $191.84.

B-136000, JUL. 28, 1958

TO MR. JOHN A. LANGEMAK:

REFERENCE IS MADE TO YOUR LETTER OF APRIL 16, 1958, REQUESTING A REVIEW OF SETTLEMENT DATED APRIL 1, 1958, WHICH DISALLOWED YOUR CLAIM FOR REIMBURSEMENT TO YOU OR TO THE HUGHES AIRCRAFT COMPANY, YOUR EMPLOYER, FOR EXPENSES INCURRED BY THE HUGHES AIRCRAFT COMPANY IN TRANSPORTING YOUR HOUSEHOLD EFFECTS FROM CHICAGO, ILLINOIS, TO LOS ANGELES, CALIFORNIA, DURING DECEMBER 1956, FOLLOWING THE RECEIPT OF ORDERS RELEASING YOU FROM ACTIVE DUTY AS A WARRANT OFFICER IN THE UNITED STATES ARMY RESERVE.

THE RECORD SHOWS THAT YOU WERE ASSIGNED TO DUTY AT FORT SHERIDAN, ILLINOIS, WHEN YOU RECEIVED ORDERS DIRECTING YOUR RELEASE FROM FURTHER ACTIVE DUTY. THESE ORDERS AUTHORIZED YOU TO PROCEED TO YOUR HOME OF RECORD AT 122 MONTEREY AVENUE, PACIFIC GROVE, CALIFORNIA, TO REVERT TO AN INACTIVE STATUS EFFECTIVE DECEMBER 10, 1956. IT APPEARS THAT PRIOR TO YOUR RELEASE FROM ACTIVE MILITARY SERVICE YOU ACCEPTED EMPLOYMENT WITH THE HUGHES AIRCRAFT COMPANY, CULVER CITY, CALIFORNIA. ON OR ABOUT DECEMBER 15, 1956, YOUR HOUSEHOLD EFFECTS WEIGHING 5,480 POUNDS WERE TRANSPORTED UPON YOUR REQUEST FROM CHICAGO TO LOS ANGELES BY ALLIED VAN LINES, INCORPORATED, ON A COMMERCIAL BILL OF LADING ISSUED TO YOU AS ASSOCIATED WITH HUGHES AIRCRAFT COMPANY, WHICH COMPANY PAID THE COST OF THE SHIPMENT, $968.87.

YOU STATE THAT AS A GOVERNMENT CONTRACTOR ENGAGED ON DEFENSE WORK PROJECTS, THE HUGHES AIRCRAFT COMPANY IS ALLOTTED CERTAIN FUNDS FOR USE IN DEFRAYING ESSENTIAL TRANSPORTATION COSTS NECESSARY IN CONNECTION WITH THE PROCUREMENT OF QUALIFIED PERSONNEL. YOU ALLEGE THAT THROUGH NO FAULT OF YOUR OWN YOU WERE UNABLE TO UTILIZE GOVERNMENT TRANSPORTATION FACILITIES FOR TRANSPORTING YOUR EFFECTS, AND THAT WHEN YOUR EMPLOYER ADDED THE TRANSPORTATION COSTS PAID TO THE ABOVE MENTIONED CARRIER ON YOUR ACCOUNT TO YOUR GROSS INCOME FOR 1956 YOUR FEDERAL INCOME TAXES FOR THE YEAR WERE INCREASED TO THE EXTENT OF $191.84. ALTHOUGH YOU STATE THAT YOU ARE NOT BEING ASSESSED AND WILL NOT BE REQUIRED TO REPAY THE HUGHES AIRCRAFT COMPANY ANY PORTION OF SUCH TRANSPORTATION CHARGES, YOU REQUEST OUR OFFICE TO AUTHORIZE REIMBURSEMENT DIRECT TO THE HUGHES AIRCRAFT COMPANY OR TO YOU FOR TRANSMISSION TO THE COMPANY SO AS TO REPLENISH THE FUNDS WHICH IT DISBURSED IN YOUR BEHALF. YOU APPARENTLY BELIEVE THAT THIS SHOULD BE DONE SINCE YOU COULD HAVE HAD THE SHIPMENT MADE AT GOVERNMENT EXPENSE INCIDENT TO YOUR RELEASE FROM ACTIVE DUTY AND, IF DONE, YOU WOULD BE RELEASED FROM PAYMENT OF INCOME TAX IN THE AMOUNT STATED.

THE JOINT TRAVEL REGULATIONS ISSUED PURSUANT TO SECTION 303 (C) OF THE CAREER COMPENSATION ACT OF 1949, 63 STAT. 814, PROVIDE FOR TRANSPORTATION (INCLUDING PACKING, CRATING, DRAYAGE, UNPACKING, AND UNCRATING), OF HOUSEHOLD GOODS OF MEMBERS OF THE UNIFORMED SERVICES WHEN ORDERED TO MAKE A PERMANENT CHANGE OF STATION, INCLUDING THE CHANGE FROM LAST STATION TO HOME. THE HOUSEHOLD EFFECTS OF RESERVISTS RELEASED FROM ACTIVE DUTY MAY BE SHIPPED TO THE MEMBER'S HOME OF RECORD, OR TO ANY OTHER POINT, ON A GOVERNMENT BILL OF LADING, PROVIDED ANY EXCESS COSTS WHICH MAY BE INVOLVED ARE COLLECTED IN ADVANCE BY THE TRANSPORTATION OFFICER, OR SHIPMENT MAY BE MADE ON A COMMERCIAL BILL OF LADING AT THE MEMBER'S PERSONAL EXPENSE SUBJECT TO REIMBURSEMENT BY THE GOVERNMENT IN AN AMOUNT NOT TO EXCEED THE COST OF AN AUTHORIZED SHIPMENT FROM LAST OR PREVIOUS DUTY STATION TO THE MEMBER'S HOME OF RECORD. THUS, IN YOUR SITUATION, YOU HAD A CHOICE OF SHIPPING YOUR HOUSEHOLD EFFECTS AT PERSONAL EXPENSE SUBJECT TO REIMBURSEMENT BY THE GOVERNMENT OR OBTAINING TRANSPORTATION IN KIND AT NO EXPENSE TO YOU. IN YOUR CASE TRANSPORTATION IN KIND COULD HAVE BEEN OBTAINED EITHER BY TURNING YOUR EFFECTS OVER TO AN ARMY TRANSPORTATION OFFICER OR TO THE HUGHES AIRCRAFT COMPANY, FOR SHIPMENT, AND NEITHER ALTERNATIVE WOULD HAVE REQUIRED ANY OUTLAY OF MONEY, EVEN TEMPORARILY, ON YOUR PART. SINCE YOU IN FACT ELECTED TO HAVE YOUR HOUSEHOLD EFFECTS SHIPPED BY YOUR EMPLOYER, THE HUGHES AIRCRAFT COMPANY, YOUR REASONS FOR SUCH ELECTION ARE NOT REGARDED AS MATERIAL.

NO LIABILITY FOR SHIPMENT OF HOUSEHOLD EFFECTS ACCRUES ON THE PART OF THE GOVERNMENT IN CASES OF MILITARY PERSONNEL WHO SHIP NO HOUSEHOLD EFFECTS INCIDENT TO THEIR RELEASE FROM ACTIVE DUTY, OR WHOSE EFFECTS ARE SHIPPED FOR THEM AT THE EXPENSE OF A THIRD PARTY. SINCE YOU DID NOT PAY THE COSTS OF MOVING YOUR HOUSEHOLD EFFECTS THERE IS NO LEGAL BASIS FOR THE PAYMENT TO YOU OF THE AMOUNT OF SUCH CHARGES. THE PAYMENT OF THESE CHARGES BY THE HUGHES AIRCRAFT COMPANY OUT OF FUNDS PROVIDED BY THE GOVERNMENT, IF MADE UNDER THE CONDITIONS AS REPORTED BY YOU, APPARENTLY WAS A LAWFUL DISBURSEMENT OF PUBLIC FUNDS, AND NO LEGAL BASIS IS PERCEIVED FOR NOW DISTURBING THAT PAYMENT. HENCE, THE SETTLEMENT OF APRIL 1, 1958, IS SUSTAINED.

AS INDICATED ABOVE, IT REASONABLY APPEARS THAT THE SHIPMENT OF YOUR EFFECTS AS MADE FROM CHICAGO TO LOS ANGELES WOULD HAVE BEEN EFFECTED BY THE ARMY WITHOUT CHARGE TO YOU HAD YOU REQUESTED IT. HOWEVER, WHETHER SUCH FACT CAN SERVE AS A BASIS FOR REDUCING YOUR INCOME FOR1956 AS REPORTED FOR TAX PURPOSES BY THE HUGHES AIRCRAFT COMPANY IS A MATTER WHICH IS NOT WITHIN THE ..END :