March 26, 1997
                                                 


                             GSBCA 13673-RELO


                      In the Matter of MARVIN C. COX


     Marvin C. Cox, Minot, ND, Claimant.

     William E. Allan, Chief, Finance and Accounting Liaison
Office, Defense Finance and Accounting Service, Denver, CO,
appearing for Department of Defense; and Lt. Col. Charles L.
Thomas, Chief, Financial Services Branch, Department of the Air
Force, Langley Air Force Base, VA, appearing for Department of the
Air Force.

GOODMAN, Board Judge.

     Mr. Marvin Cox is an employee of the Department of the Air
Force.  In August 1994, his official duty station was relocated
from Griffiss Air Force Base, New York to Minot Air Force Base,
North Dakota.  Mr. Cox sold his house in New York with the help of
the Housing Assistance Program (HAP), which is run by the United
States Army Corps of Engineers.  The total of Mr. Cox s regular
salary and his allowable relocation expenses exceeded $60,600, the
maximum amount of annual wages from which social security tax is
withheld.  Excess social security tax in the amount of $495.64 was
withheld from Mr. Cox.  The finance office at Minot Air Force Base
reimbursed Mr. Cox for $268.72, a portion of the excess social
security tax withheld, but did not reimburse him for the portion
withheld by the Corps of Engineers in the amount of $226.92.  Mr.
Cox then requested reimbursement from the Army for the amount of
excess social security tax withheld by the Corps of Engineers,
which responded that he should seek reimbursement from the Air
Force.  By letter dated November 14, 1995, the Air Force sought an
opinion from the General Accounting Office pursuant to 31 U.S.C. 
3529 as to whether the Air Force and the Corps of Engineers are
deemed separate employers for purposes of social security
withholding. 

     This matter has been resolved and is no longer in dispute. 
Mr. Cox has already received the excess social security tax sought
in this case.  He claimed $227 as excess social security tax
withheld on his 1994 tax return, and this amount was included in
total payments and credited against his tax liability.  On
March 14, 1997, Mr. Cox advised the Board that he did receive the
requested refund from the IRS.




                                   _________________________
                                   ALLAN H. GOODMAN
                                   Board Judge