Being audited by the IRS for my service connected disability pension

[retiredleo]

I am being audited by the IRS and they advised I completed my taxes incorrectly. I received a service connected disability pension from my department in Florida. I am receiving 60% of my salary and the department doesn't take taxes out of my check. When I completed my taxes I document that I receive a pension and no taxes are being taken out of.

The IRS is asking me why I shouldn't have to pay taxes. I contacted the pension office at my department and they said they can not give any advice and just because they don't take taxes out, it is up to the IRS weather or not you have to pay taxes. (absolutely no help) I have researched and can't locate anything that will help me.

My question is has anyone had this issue? If so, what was the solution? Do I or don't I have to pay taxes on my pension?

Any help would be greatly appreciated or if you know of a good tax attorney in the Tampa Bay area that is pro police.

Thank you very much

[John_Sansbury]

No, you do not have to file Income Tax on a service connected disability, that disability is non-taxable and therefore considered non-income. I tried to attach a copy of the letter from IRS to our County Administrator explaining why this disability is non-taxable, but the "add file" on this site is not letting me attach it. send me an email to john_sansbury@yahoo.com and I'll send it from there.