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                              March 11, 1997
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                             GSBCA 13768-TRAV


                       In the Matter of DAVID SMYTHE


    David Smythe, Oak Harbor, WA, Claimant.

    Judy Hughes, Defense Finance and Accounting Service, Columbus,
OH, appearing for Department of Defense.

VERGILIO, Board Judge.

    The agency forwarded for this Board's review a question posed
with respect to the claimant, Mr. David Smythe, namely, whether an
agency's payment of round trip renewal agreement travel is
considered taxable income to the employee.  The agency references
tax reporting requirements found in an announcement of the Internal
Revenue Service (IRS) and states that the guidance does not
identify the travel payment as either a taxable or a non-taxable
reimbursement.  Having received conflicting opinions from various
offices, the agency seeks an official determination.  With respect
to Mr. Smythe, the agency has reported his travel amount as income
which has been taxed.

    Initially, Mr. Smythe responded by stating, first, that the
matter does not revolve around a claim for reimbursement and that
no money is involved, such that the Board may lack authority over
the matter, and, second, that the IRS has resolved his case by
deciding that the payment received was not earned income and not
taxable as such.  Thereafter, in response to a Board inquiry, Mr.
Smythe opposed a dismissal of this matter, as he seeks a definitive
resolution of the taxability issue because, he states, others will
benefit by a consistent agency position.  The agency does not
oppose a dismissal.

    In light of Mr. Smythe's assertion that the IRS has resolved
the taxability question applicable to him, there is no matter for
the Board to resolve.  Therefore, the Board dismisses this matter,
without having to determine if the Board's authority reaches to the
issue here presented, the tax treatment of renewal agreement travel
reimbursement.


                                    ____________________________
                                         JOSEPH A. VERGILIO
                                         Board Judge