Richard A. and Janice S. Adams - Page 2

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          Rules 180, 181, and 183.1  The Court agrees with and adopts the             
          opinion of the Special Trial Judge that is set forth below.                 
                         OPINION OF THE SPECIAL TRIAL JUDGE                           
               POWELL, Special Trial Judge: Respondent determined a                   
          deficiency in petitioners' 1993 Federal income tax in the amount            
          of $9,935 and an accuracy-related penalty under section 6662(a)             
          in the amount of $1,987.  Petitioners resided in Decatur,                   
          Georgia, at the time they filed their petition.                             
               The sole issue is whether Richard A. Adams (petitioner) is             
          entitled to exclude a payment received from his former employer,            
          IBM, from gross income pursuant to section 104(a)(2).                       
               The facts may be summarized as follows.  Petitioner was                
          employed by IBM in 1956.  As part of IBM's publicized downsizing            
          petitioner was retired on September 30, 1993.  The next day                 
          petitioner was employed by a joint venture between IBM and                  
          Eastman Kodak (Kodak) that became Technology Service Solutions              
          (TSS).  TSS apparently had been a service section of IBM that was           
          eliminated from the corporate structure by forming the                      
          partnership with Kodak.  Thus, for example, most, if not all, of            
          petitioner's co-employees and supervisors came from IBM.  In                
          addition, it appears that petitioner kept several IBM corporate             
          credit cards while at TSS.                                                  

          1    Unless otherwise indicated, all section references are to              
          the Internal Revenue Code in effect for the year in issue, and              
          all Rule references are to the Tax Court Rules of Practice and              

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