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Discussion
The compromise and settlement of tax cases are governed by
general principles of contract law. A settlement stipulation is
in essence a contract. Each party agrees to concede some rights
which he or she may assert against his or her adversary as
consideration for those secured in the settlement agreement.
Saigh v. Commissioner, 26 T.C. 171, 177 (1956). Like contracts,
stipulations of settlement bind the parties thereto to the terms
thereof. Stamos v. Commissioner, 87 T.C. 1451, 1455 (1986). In
determining the proper meaning of the terms, we focus on the
language of the stipulation and the circumstances surrounding its
execution. Robbins Tire & Rubber Co. v. Commissioner, 52 T.C.
420, 435-436 (1969); see also Brink v. Commissioner, 39 T.C. 602,
606 (1962), affd. 328 F.2d 662 (6th Cir. 1964). We will enforce
a stipulation of settlement, whether filed or orally stipulated
into the record, unless justice requires that we do otherwise.
Adams v. Commissioner, 85 T.C. 359, 375 (1985); Sennett v.
Commissioner, 69 T.C. 694 (1978); Saigh v. Commissioner, 26 T.C.
171, 177 (1956).
Respondent contends that the Executrix failed to preserve a
claim to special use valuation under section 2032A. Respondent
argues that Executrix's claim to section 2032A valuation involves
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