A. Sidney Malbon and Helene J. Malbon v. United States

Taxpayers, A. Sidney Malbon and Helene Malbon, appeal the district court’s denial of a refund for the 1987 tax year. The taxpayers contend that they are entitled to a refund for individual income tax paid on Sidney Mal-bon’s lump-sum credit payment received pursuant to the Civil Service Retirement System (“CSRS”). The taxpayers also contend that the “deemed deposit” received as part of the lump-sum payment was not taxable in 1987 because it was not actually received by the taxpayers. The district court granted summary judgment in favor of the United States of America. We have jurisdiction pursuant to 28 U.S.C. § 1291 and affirm.

I

The pertinent facts are undisputed. Sidney Malbon was an employee of the United States of America for more than 32 years. During that time period he participated in the CSRS and made mandatory contributions in the amount of $47,783.64. He retired on December 31, 1986. At the time of his retirement he was informed by the Office of Personnel Management (“OPM”) that he could either receive his annuity or elect an alternative form of annuity pursuant to 5 U.S.C. § 8343a. The alternative form of annuity provided Malbon with a lump-sum payment of $48,135.64…