B-176203: Jan 16, 1973

PROVIDES THAT DISABILITY RETIRED PAY IS NOT SUBJECT TO FEDERAL INCOME TAX. IN WHICH THE COURT HELD THE PLAINTIFF'S CLAIM WAS NOT FOR THE REFUND OF TAXES BUT TO EFFECTUATE THE ADMINISTRATIVE REMEDY ALLOWED UNDER 10 U.S.C. 1552. THAT SHELTER OF INCOME FROM TAXATION IS A "PECUNIARY BENEFIT" FLOWING FROM THE RECORD CORRECTION. THERE IS NO OBJECTION TO FOLLOWING THE RULE IN CLYDE A. CL. 1) TO THE EFFEC...

B-176203: Jan 16, 1973

An employee's wife claimed refund of federal income taxes withheld from the retired pay of her deceased husband for the years 1961 to 1966 because, as of October 1, 1967, her husband waived part of his retired pay in favor of tax-exempt Veterans Administration compensation. There is no objection to following the rule that claims for amounts withheld for income tax purposes will be treated as pecun...