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Thus, the lump-sum distribution is an accelerated distribution of
annuity payments that would otherwise be paid to the retiree over
the expected duration of the CSRS annuity. Montgomery v. United
States, 18 F.3d 500, 502 (7th Cir. 1994); George v. United
States, 30 Fed. Cl. 371, 377 (1994); Shimota v. United States,
supra at 522.
The distributions that petitioner received from the CSRS are
subject to taxation under section 72 pursuant to section 402(a).
Section 72 is applicable to distributions received pursuant to
the CSRS. Malbon v. United States, supra at 468; Guilzon v.
Commissioner, 97 T.C. 237, 242 (1991), affd. 985 F.2d 819 (5th
Cir. 1993); Shimota v. United States, supra at 519-520; sec.
1.72-2(a)(3)(iii), Income Tax Regs. Section 402(a) provides:
the amount actually distributed to any distributee by
any employees’ trust described in section 401(a) which
is exempt from tax under section 501(a) shall be
taxable to him, in the year in which so distributed,
under section 72 (relating to annuities). * * *
The CSRS is a plan that meets the requirements of section 401(a).
Guilzon v. Commissioner, supra at 241; Shimota v. United States,
supra at 519-520. A lump-sum payment from the CSRS is a payment
from a plan described in section 401(a) and is treated as a
payment under an annuity contract and is subject to tax under
section 72(e)(2). Guilzon v. Commissioner, supra at 242-243;
Shimota v. United States, supra at 523.
Petitioners’ argument that double taxation will occur is
without merit. Petitioner will recover his investment in the
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