5
withdrawal of the funds on or about October 31, 1990, and his
deposit of the same into a personal checking account qualifies as
a taxable distribution. We agree.
The distribution that petitioner received from the CSRS is
subject to taxation under section 72 pursuant to section 402(a).
CSRS is a plan that meets the requirements of section 401(a), and
the law is well established that section 72 is applicable to
distributions received pursuant to the CSRS. Malbon v. United
States, 43 F.3d 466, 468 (9th Cir. 1994); Shimota v. United
States, 21 Cl. Ct. 510, 519-520 (1990), affd. 943 F.2d 1312 (Fed.
Cir. 1991); sec. 1.72-2(a)(3)(iii), Income Tax Regs. A lump sum
payment from the CSRS is treated as a payment under an annuity
contract. Roundy v. Commissioner, T.C. Memo. 1995-298; Kirkland
v. Commissioner, T.C. Memo. 1994-220. Such payment is subject to
tax in the year in which it is received as a payment under an
annuity contract that is "not received as an annuity" under
section 72(e)(1)(A). Guilzon v. Commissioner, 97 T.C. 237, 243
(1991), affd. 985 F.2d 819 (5th Cir. 1993).
At the time petitioner withdrew the funds from the Fidelity
IRA and deposited them into his personal checking account, the
funds became taxable income. Petitioner's argument that whatever
tax was due was withheld by Fidelity prior to his withdrawal of
the funds is unfounded. First, it is not the responsibility of
financial institutions to withhold income taxes from savings
withdrawals, and petitioner presented no documentation that such
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