B-136202, FEB. 9, 1960

B-136202, FEB. 9, 1960

TO MR. JAMES B. GRIMMER:

REFERENCE IS MADE TO YOUR LETTER DATED JANUARY 12, 1960, FURTHER CONCERNING THE MATTER OF A LUMP-SUM PAYMENT WHICH ACCRUED TO YOU BY VIRTUE OF YOUR SERVICE AS AN OFFICER OF THE AIR CORPS RESERVE.

WE PREVIOUSLY HAVE ADVISED YOU THAT COMMENCING JUNE 2, 1947, THE DATE OF YOUR ACCEPTANCE OF THE APPOINTMENT AS LIEUTENANT COLONEL, AIR CORPS RESERVE, YOU NO LONGER HAD AN ACTIVE DUTY STATUS AS AN AIR CORPS RESERVE OFFICER, SINCE SUCH APPOINTMENT PROVIDED THAT YOU WERE NOT TO PERFORM THE DUTIES OF AN OFFICER UNDER THAT APPOINTMENT UNTIL SPECIFICALLY SO DIRECTED BY COMPETENT ORDERS, AND SINCE THE ACCEPTANCE OF THAT APPOINTMENT OPERATED TO VACATE YOUR PRIOR APPOINTMENT AS FIRST LIEUTENANT, AIR CORPS RESERVE. THUS, SOLELY ON THE BASIS THAT YOUR ACTIVE DUTY STATUS AS AN AIR CORPS RESERVE OFFICER ENDED ON JUNE 1, 1947, WE CONCLUDED THAT YOU DID NOT BECOME ENTITLED TO A LUMP-SUM PAYMENT FOR ANY PART OF THE PERIOD YOU SERVED ON ACTIVE DUTY AFTER THAT DATE.

IN OUR LETTER DATED NOVEMBER 3, 1959, B-136202, WE ADVISED YOU THAT YOUR CLAIM FOR A LUMP-SUM PAYMENT FOR A PERIOD FOLLOWING THE DATE OF YOUR ACCEPTANCE OF APPOINTMENT AS LIEUTENANT COLONEL, AIR CORPS RESERVE, IS QUITE SIMILAR TO THE CLAIM PRESENTED IN THE CASE OF LIEUTENANT COLONEL CLIFFORD FREDIC RANSOM AND WITH THAT LETTER WE ENCLOSED A COPY OF OUR DECISION DATED OCTOBER 25, 1954, B-118446, TO COLONEL RANSOM'S WIDOW. YOU WILL RE-EXAMINE THAT DECISION, YOU WILL FIND THAT WE THERE POINTED OUT THAT COMMENCING JULY 1, 1947, THE DATE OF HIS ACCEPTANCE OF THE APPOINTMENT AS LIEUTENANT COLONEL, AIR CORPS RESERVE, COLONEL RANSOM NO LONGER HAD AN ACTIVE DUTY STATUS AS AN AIR CORPS RESERVE OFFICER, SINCE SUCH APPOINTMENT PROVIDED THAT HE WAS NOT TO PERFORM THE DUTIES OF AN OFFICER UNDER THAT APPOINTMENT UNTIL SO DIRECTED BY COMPETENT ORDERS AND SINCE THE ACCEPTANCE OF THAT APPOINTMENT OPERATED TO VACATE HIS PRIOR APPOINTMENT IN THE AIR CORPS RESERVE. ACCORDINGLY, SOLELY ON THE BASIS THAT COLONEL RANSOM'S ACTIVE DUTY STATUS AS AN AIR CORPS RESERVE OFFICER ENDED ON JUNE 30, 1947, WE HELD THAT THERE WAS NO ENTITLEMENT IN HIS CASE TO A LUMP-SUM PAYMENT FOR ANY PART OF THE PERIOD HE SERVED ON ACTIVE DUTY AFTER THAT DATE. ALTHOUGH NOT MATERIAL TO THE CONCLUSION REACHED IN HIS CASE, YOUR ATTENTION IS INVITED TO THE FACT THAT WE POINTED OUT IN THE DECISION IN HIS CASE THAT HIS SERVICE IN THE ENGINEER RESERVE WAS PRIOR TO HIS SERVICE IN THE AIR CORPS RESERVE, AND, ALSO, THAT ALL OFFICERS OF THE AIR CORPS RESERVE WERE TRANSFERRED TO THE UNITED STATES AIR FORCE RESERVE AS OF APRIL 14, 1948. ACCORDINGLY, THERE APPEARS NO BASIS FOR YOUR APPARENT BELIEF THAT SUCH DECISION IS NOT FOR APPLICATION IN YOUR CASE.

WE HAVE IN OUR FILE A PHOTOCOPY OF YOUR MILITARY PAY RECORD CARD FOR THE PERIOD FROM JANUARY 1 TO MAY 31, 1950. THAT PAY RECORD CARD SHOWS A CREDIT ITEM OF $2,500 AS "LUMP SUM PVT AIR RES 14 JAN 43 TO 23 JUN 48 (5 YR 5 MO AND 10 DAYS).' THUS, YOU WERE ACTUALLY CREDITED FOR THE 5-YEAR PERIOD FROM JANUARY 14, 1943, THROUGH JANUARY 13, 1948, AS HAS PREVIOUSLY BEEN EXPLAINED. THE PAY CARD ALSO SHOWS AMONG THE DEBIT ITEMS A WITHHOLDING TAX OF $375 (15 PERCENT OF $2,500) ON THAT CREDIT ITEM AND A PAYMENT OF THE BALANCE OF $2,125. SINCE YOU WERE ENTITLED TO COUNT ONLY YOUR PERIOD OF SERVICE AS A RESERVE OFFICER FROM JANUARY 14, 1943, TO JUNE 1, 1947 (4 YEARS, 4 MONTHS AND 18 DAYS), IN COMPUTING THE LUMP-SUM PAYMENT HERE INVOLVED, YOUR PAY ACCOUNT SHOULD HAVE BEEN CREDITED WITH ONLY $2,191.67, AND THERE RESULTED AN OVERPAYMENT OF $308.33 (THE DIFFERENCE BETWEEN $2,500 AND $2,191.67). WHILE YOU WERE ACTUALLY PAID ONLY THE SUM OF $2,125 AS BONUS, THE BALANCE OF $375 WAS CREDITED TO YOUR ACCOUNT AND INCLUDED IN THE AMOUNT OF TAX WITHHELD FROM YOUR PAY DURING 1950. SINCE YOU UNDOUBTEDLY RECEIVED CREDIT FOR SUCH AMOUNT IN THE COMPUTATION OF YOUR INCOME TAX FOR THAT YEAR, ANY TAX ADJUSTMENT TO WHICH YOU MIGHT BE ENTITLED INCIDENT TO REFUNDING THE BONUS OVERPAYMENT OF $308.33 WOULD BE A MATTER FOR CONSIDERATION BY THE INTERNAL REVENUE SERVICE.

WE TRUST THAT THE FOREGOING EXPLANATION WILL BE SUFFICIENT TO SHOW WHY WE FIND NO REASON FOR MODIFICATION OF OUR PRIOR ACTION IN YOUR CASE--- FINDING YOU INDEBTED TO THE UNITED STATES IN THE AMOUNT OF $808.33 (WHICH AMOUNT INCLUDES THE AMOUNT OF $308.33 MENTIONED ABOVE). ACCORDINGLY, IMMEDIATE STEPS SHOULD BE TAKEN BY YOU TO MAKE COMPLETE PAYMENT OF THE AMOUNT OF THIS INDEBTEDNESS, OR TO SUBMIT AN ACCEPTABLE PLAN FOR ITS FINAL LIQUIDATION BY INSTALLMENTS, IN ORDER THAT FURTHER COLLECTION ACTION WILL NOT BE NECESSARY.

PAYMENTS MADE BY YOU SHOULD BE IN THE FORM OF CHECKS OR MONEY ORDERS PAYABLE TO "U.S. GENERAL ACCOUNTING OFFICE" AND FORWARDED TO U.S. GENERAL ACCOUNTING OFFICE, POST OFFICE BOX 2610, WASHINGTON 13, D.C., REFERRING TO "DW-Z-529499-WDG-1.'