Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 72-69

1972-1 C.B. 23

Sec. 61

IRS Headnote

The treatment of amounts received by a retired military officer as an instructor in the junior program of the ROTC is equally applicable to amounts received by retired enlisted men under the same program; Revenue Ruling 71-307 amplified.

Full Text

Rev. Rul. 72-69

Revenue Ruling 71-307, C.B. 1971-2, 78, discusses the proper treatment for Federal income tax purposes of amounts received by a retired military officer from a school board as an instructor in the junior program of the Reserve Officers' Training Corps in accordance with 10 U.S.C. 2031(d) Department of Defense Regulations 32 C.F.R. section 111.4(b)(2). That Revenue Ruling holds that the entire amount received by the retired military officer from the school board is compensation, and is includible in his gross income pursuant to section 61 of the Internal Revenue Code of 1954.

The question has been asked whether the conclusion of Revenue Ruling 71-307 is equally applicable to a retired enlisted man receiving amounts under the same circumstances as those involving the retired military officer in the Revenue Ruling.

Section 2031(d) of 10 U.S.C. provides that the retired personnel who may be employed as administrators and instructors in the Junior Reserve Officers' Training Corps program includes officers and noncommissioned officers, and members of the Fleet Reserve and Fleet Marine Corps Reserve.

Accordingly, Revenue Ruling 71-307, although illustrating a situation involving a retired military officer participating in the program as an instructor, is equally applicable to all other retired personnel participating in the Junior Reserve Officers' Training Corps program. The conclusion of the Revenue Ruling is equally applicable to persons participating in the program as either instructors or administrators. Revenue Ruling 71-307 is hereby amplified.