1All section references are to the Internal Revenue Code in
effect for the year at issue. All Rule references are to the Tax
Court Rules of Practice and Procedure.
T.C. Memo. 2006-72
UNITED STATES TAX COURT
STEPHEN DARYL ROYAL, Petitioner v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 19001-04. Filed April 11, 2006.
Stephen Daryl Royal, pro se.
Bradley C. Plovan, for respondent.
CHIECHI, Judge: Respondent determined a $5,324 deficiency
in, and a $1,065 accuracy-related penalty under section 6662(a)1
on, petitioner’s Federal income tax (tax) for his taxable year
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2At trial, petitioner conceded the accuracy-related penalty
under sec. 6662(a) that respondent determined.
2002. The issues remaining for decision are:2
(1) Is petitioner required to include $25,940.49 in his
gross income for his taxable year 2002? We hold that he is.
(2) Is petitioner entitled for his taxable year 2002 to the
earned income tax credit? We hold that he is not.
Virtually all of the facts have been stipulated by the
parties and are so found.
At the time petitioner filed the petition in this case, his
legal residence was in Baltimore City, Maryland.
During 2002, petitioner was an employee of the U.S. Postal
Service (Postal Service) until he retired in that year because of
The U.S. Office of Personnel Management (OPM) approved
petitioner’s retirement from the Postal Service because of
disability. In a letter dated July 29, 2002, OPM advised peti-
tioner as follows:
Your application for disability retirement has been
According to information we have received from your
agency, you have not been separated from Government
service. Therefore, we are notifying your agency of
the approval and asking them to separate you. We are
asking them to give us your last day of pay. Payment
of annuity cannot start until after your last day of
pay. If you have sick leave remaining, the last day of
pay will be the day your sick leave is exhausted. We
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