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references are to the Tax Court Rules of Practice and Procedure.
After concessions, the principal issue for decision is whether
the lump-sum credit from the Civil Service Retirement System
(CSRS) is includable in petitioners' gross income pursuant to
sections 72(e) and 402(a). If the lump-sum credit is taxable,
the subsidiary issue for decision is whether a portion of any
deemed deposit or deemed redeposit in respect of that lump-sum
credit is includable in petitioners' gross income pursuant to
section 72(b) rather than pursuant to section 72(e).
Background
All of the facts have been stipulated pursuant to Rule 122.
The stipulated facts and the attached exhibit are incorporated in
our findings by this reference. At the time the petition was
filed, petitioners resided in Portland, Oregon. Petitioners'
1991 joint Federal income tax return (1991 return) was prepared
and filed on the cash receipts and disbursements method.
During 1991, Gary B. Logsdon retired from the Federal
Government and received a lump-sum payment in the amount of
$62,873. On their 1991 return, petitioners reported $11,808 of
the above amount on lines 17a (Total pensions) and 17b (Taxable
amount). No other entry or reference was made by petitioners on
their 1991 return for the $51,065 balance of the lump-sum
payment. Respondent determined that petitioners were required to
include the lump-sum payment in their gross income in 1991.
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