B-157674, OCT. 18, 1965

B-157674, OCT. 18, 1965

TO MR. HUGH A. CRABB:

FURTHER REFERENCE IS MADE TO YOUR LETTER OF AUGUST 23, 1965, IN EFFECT REQUESTING RECONSIDERATION OF SETTLEMENT DATED AUGUST 18, 1965, WHICH DISALLOWED YOUR CLAIM FOR REFUND OF REENLISTMENT BONUS RECOUPED WHEN YOU TRANSFERRED TO THE U.S. NAVY FLEET RESERVE ON JUNE 5, 1957.

THE RECORDS SHOW THAT ON APRIL 19, 1954, YOU REENLISTED IN THE UNITED STATES NAVY FOR A PERIOD OF 6 YEARS AND RECEIVED A REENLISTMENT BONUS OF $360. SINCE YOU TRANSFERRED TO THE FLEET RESERVE ON JUNE 5, 1957, THE AMOUNT OF $172.19 WAS RECOUPED ON YOUR FINAL PAY VOUCHER FOR THE UNEXPIRED PART OF YOUR ENLISTMENT. IN YOUR LETTER OF AUGUST 23, 1965, YOU SAY THAT YOU SERVED THIS TIME WHEN YOU RETURNED TO ACTIVE DUTY IN 1960 FOR TWO YEARS AND THAT YOU WERE INFORMED THEN THAT YOU WERE UNDER THE OLD PAY BILL RULES AND REGULATIONS AND THAT SUCH SERVICE WOULD COVER THE TIME LOST IN THE PRIOR ENLISTMENT TO ENTITLE YOU TO THE REMITTANCE CLAIMED.

YOU WERE PAID A REENLISTMENT BONUS ON THE BASIS THAT YOU WOULD COMPLETE YOUR 6-YEAR ENLISTMENT UNDER THE PROVISIONS OF SECTION 207 OF THE CAREER COMPENSATION ACT OF 1949, 63 STAT. 811, AS ADDED BY THE ACT OF OCTOBER 26, 1951, 65 STAT. 653, WHICH PROVIDES THAT:

"UNDER SUCH REGULATIONS AS MAY BE APPROVED BY THE SECRETARY OF DEFENSE OR THE SECRETARY OF THE TREASURY WITH RESPECT TO COAST GUARD PERSONNEL ANY PERSON TO WHOM A REENLISTMENT BONUS IS PAID AS HEREIN PROVIDED, AND WHO VOLUNTARILY OR AS THE RESULT OF HIS OWN MISCONDUCT, DOES NOT COMPLETE THE TERM OF ENLISTMENT FOR WHICH THE BONUS WAS PAID, SHALL BE LIABLE TO REFUND SUCH PART OF SUCH BONUS AS THE UNEXPIRED PART OF SUCH ENLISTMENT BEARS TO THE TOTAL ENLISTMENT PERIOD FOR WHICH SUCH BONUS WAS PAID, LESS ANY AMOUNT PAID IN FEDERAL OR STATE INCOME TAXES ON SUCH REFUNDABLE T.'

THE ACT OF JUNE 25, 1956, 70 STAT. 338, ELIMINATED THE PHRASE "LESS ANY AMOUNT PAID IN FEDERAL OR STATE INCOME TAXES ON SUCH REFUNDABLE PART" FROM THIS PROVISION OF LAW, THUS REQUIRING THE MEMBER TO REFUND THE FULL AMOUNT OF THE REENLISTMENT BONUS HE WAS PAID FOR THE UNEXPIRED PART OF HIS REENLISTMENT.

PARAGRAPH 044070-4A OF THE NAVY COMPTROLLER MANUAL PROVIDED, AT THE TIME INVOLVED, THAT ANY ENLISTED MEMBER WHO WAS PAID A REENLISTMENT BONUS UNDER THE PROVISIONS OF THAT PARAGRAPH FOR A REENLISTMENT OR AN EXTENSION OF AN ENLISTMENT ENTERED INTO ON OR AFTER OCTOBER 26, 1951, AND WHO, EITHER VOLUNTARILY OR AS THE RESULT OF HIS OWN MISCONDUCT, DID NOT COMPLETE THE ENLISTMENT OR EXTENSION OF ENLISTMENT FOR WHICH THE REENLISTMENT BONUS WAS PAID, SHOULD REFUND, IN ACCORDANCE WITH THE PROVISIONS OF THE FOLLOWING SUBPARAGRAPHS, A PRO RATA PORTION OF THE REENLISTMENT BONUS PAID. PARAGRAPH 044070-4B2 PROVIDED THAT THE PERIOD OF TIME FROM DATE OF SEPARATION FROM ACTIVE SERVICE THROUGH THE NORMAL DATE OF EXPIRATION OF ENLISTMENT WOULD BE CONSIDERED AS TIME NOT SERVED FOR THE PURPOSE OF DETERMINING THE AMOUNT OF REENLISTMENT BONUS TO BE REFUNDED IF THE SEPARATION WAS FOR---

"TRANSFER TO THE FLEET RESERVE OR FLEET MARINE CORPS RESERVE AND RELEASED TO INACTIVE DUTY PRIOR TO THE EXPIRATION OF THE NUMBER OF YEARS SERVICE FOR WHICH THE BONUS WAS PAID.'

SINCE YOU WERE TRANSFERRED TO THE FLEET RESERVE AND RELEASED FROM ACTIVE DUTY ON JUNE 5, 1957, BEFORE COMPLETING THE PERIOD OF SERVICE FOR WHICH YOU WERE PAID A REENLISTMENT BONUS, IT IS CONCLUDED THAT THE RECOUPMENT OF THAT PART OF THE BONUS FOR THE UNEXPIRED PERIOD OF YOUR REENLISTMENT WAS PROPERLY MADE. WHILE IT IS REGRETTABLE THAT YOU MAY HAVE BEEN MISINFORMED AND MAY HAVE UNDERSTOOD THAT YOUR SUBSEQUENT RETURN TO ACTIVE DUTY IN 1960 COULD BE USED TO COMPLETE THE UNEXPIRED PORTION OF YOUR EARLIER ENLISTMENT, THERE IS NO PROVISION IN THE LAW AND REGULATIONS AUTHORIZING SUCH SUBSTITUTION OF SERVICE FOR THE PURPOSE OF ENTITLEMENT TO THE REENLISTMENT BONUS.

ACCORDINGLY, THE DISALLOWANCE OF YOUR CLAIM WAS CORRECT AND IS SUSTAINED.

REGARDING YOUR REQUEST THAT OUR OFFICE CONSIDER THE ADJUSTMENT OF YOUR FEDERAL INCOME TAXES, YOU ARE ADVISED THAT AUTHORITY TO EFFECT ADJUSTMENTS OF INCOME TAX OVERPAYMENTS IS VESTED IN THE INTERNAL REVENUE SERVICE OF THE TREASURY DEPARTMENT (SECTION 6402 OF TITLE 26, UNITED STATES CODE) AND IS NOT A MATTER WITHIN THE JURISDICTION OF THIS OFFICE.