7
the tax imposed under section 402(a) or the penalty imposed under
section 72(t). As stated above, the amount simply represents a
commission charged by Fidelity and a decline in the market value
of the IRA stock. Consequently, petitioners are not entitled to
an adjustment to income in the amount of $1,614.91.
Issue 3. CSRS Distribution
Prior to trial, petitioner stipulated that he received $464
from CSRS in 1990 and that he failed to report this distribution
as taxable income. At trial, petitioner attempted to withdraw
this stipulation and argued that he did not receive $464 but,
instead, received $104.95 of nontaxable income. In support of
his position, petitioner presented a statement from the Office of
Personnel Management (OPM) stating that petitioner's application
for refund of retirement deductions had been approved, and that a
check for $104.95 would be issued. The statement indicated that
the refund, consisting entirely of funds petitioner had put into
the Civil Service Retirement and Disability Fund, was nontaxable.
Respondent does not dispute that the $104.95 is exempt from
tax. An Examination/Information Return Master File Transcript
For Tax Year 1990 (the transcript), which lists payee entities,
payer entities, information forms received (e.g., Form 1099), and
types and amounts of income, indicates that petitioner received a
gross distribution of $464 of taxable income from CSRS during
1990. Although respondent did not present the Form 1099-R in
question, the absence of that document appears due to the fact
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