Tax Type
Individual Income Tax
Description
District of Columbia retiree; Refund request
Topic
Returns/Payments/Records
Date Issued
04-14-1992
April 14, 1992
Re: Request for Ruling: Individual Income Tax
Dear****************
This will reply to your letter of April 27, 1989 in which you requested a ruling on your eligibility for refund of 1985 taxes.
FACTS
The Taxpayer retired from the Metropolitan Police Department,********on October 1, 1974. At the time of his employment, the Taxpayer took a U. S. Civil Service Examination and has the same hospitalization and life insurance as federal government retirees. The retirement benefits for the Metropolitan Police are paid by the*****************government yet are funded in part by the******* member contributions, and the U. S. Congress.
The Taxpayer seeks a ruling on his eligibility for a refund of 1985 taxes in the event that the courts require a refund to federal government retirees as well as his eligibility for the retirement income subtraction.
RULING
The question in the instant case is whether the Taxpayer is a federal government retiree and, as such, may be eligible for a refund in the event refunds are ordered by the courts.
An individual receiving pay or compensation for personal service as an officer or employee of the government of the******** is subject to the same income taxation as an officer or employee of the United States, its territories or possessions or political subdivision pursuant to 4 U.S.C. §111. However, whether the Taxpayer, as a retiree of the********** Police Department, is entitled to a refund of 1985 taxes in the event that the courts require a refund to federal government retirees depends on facts unavailable to us at this time.
As you may be aware, the federal pension issue is currently in litigation and is now pending before the U. S. Supreme Court. Therefore, until a final judicial order not subject to further appeal is entered, the department will not issue refunds.
In the event that the courts ultimately determine that refunds are due, federal pensioners will have one year from the date of the entry of the final judicial order to seek refunds from the department as provided in Va. Code § 58.1-1823.
If you have any further questions regarding this matter, please contact the department.
Sincerely,
W. H. Forst
Tax Commissioner
TPD/3313H
Rulings of the Tax Commissioner