Gary Benton Logsdon and Karen Ruth Logsdon - Page 3

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                                     Discussion                                       
               Petitioners bear the burden of proving that respondent's               
          determinations in the notice of deficiency are erroneous.  Rule             
          142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933).  The fact             
          that the case was submitted fully stipulated does not alter                 
          petitioners' burden of proof or the effect of a failure of proof.           
          Rule 122(b); Borchers v. Commissioner, 95 T.C. 82, 91 (1990),               
          affd. 943 F.2d 22 (8th Cir. 1991).1                                         
               Federal employees eligible to participate in the CSRS make             
          mandatory contributions from their salary to the Civil Service              
          Retirement and Disability Fund (Fund).  5 U.S.C. secs. 8334(a),             
          8331(5) (Supp. 1991).  The employing agency withholds such                  
          mandatory contributions from the employee's salary.  5 U.S.C.               
          sec. 8334(a)(1).  The amount so withheld for CSRS from an                   
          employee's salary is taxable in the year in which the mandatory             

               1Petitioners stipulated that Mr. Logsdon received a lump-sum           
          payment in the amount of $62,873 but reported only $11,808 as               
          income.  After trial, petitioners seek relief from the above                
          stipulation with regard to the amount received, attaching a copy            
          of Mr. Logsdon's Form 1099R to their reply brief.  Mr. Logsdon's            
          Form 1099R had not been admitted into evidence when this case was           
          accepted as fully stipulated on Oct. 2, 1995.  Such evidence must           
          be presented to the Court in accordance with the Rules governing            
          trials.  See Rule 143(b).  On Oct. 2, 1995, the record in this              
          case was closed.  Accordingly, Mr. Logsdon's Form 1099R is not              
          admitted into evidence and is not a part of the record.                     
          Moreover, by suggesting this change to the stipulation for the              
          first time in their posttrial brief, petitioners are advancing a            
          position that respondent was unable to develop for trial and that           
          would prejudice respondent's case.  Consequently, we shall not              
          permit petitioners to qualify the parties' stipulation.  Rule               
          91(e); Louisiana Land & Exploration Co. v. Commissioner, 90 T.C.            
          630, 648-649 (1988).                                                        




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