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attaches, extends to the entire subject of the correct tax for
the particular year.” Erickson v. United States, 159 Ct. Cl.
202, 309 F.2d 760, 767 (1962).
An agreed or stipulated judgment is a judgment on the merits
for purposes of res judicata. In re Baker, 74 F.3d 906, 910 (9th
Cir. 1996); see also United States v. Intl. Bldg. Co., 345 U.S.
502, 503-506 (1953) (recognizing res judicata effect of
stipulated Tax Court decisions); accord Erickson v. United
States, supra at 768; Krueger v. Commissioner, 48 T.C. 824, 828-
829 (1967).
Respondent issued to petitioners a notice of deficiency with
respect to the subject taxable years, petitioners petitioned for
redetermination, and the case was concluded without trial by
entry of a stipulated decision on February 7, 1994. Here,
petitioners would like to argue that the statutory notice of
deficiency was issued outside the period of limitations for the
years involved. Petitioners could have made this challenge in
their pleadings in the earlier Tax Court proceeding as an
affirmative defense under Rule 39, Pleading Special Matters.
The validity of the notice of deficiency is a matter that
could have been raised and litigated in connection with the
deficiency proceeding, involving these same petitioners, and the
same tax years. Because the decision in that case was not
appealed and has since become final, res judicata precludes
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