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valid basis to deny the benefits of that election in computing
the decedent's estate tax.
We disagree with Executrix. Whether petitioner is entitled
to the benefits of section 2032A requires the determination of
several factual issues; consequently, the application of 2032A is
not merely computational.3 The ability of Executrix to use
section 2032A raises a new issue that was not mentioned in the
subject notice of deficiency, the instant pleadings, or the
negotiations surrounding the settlement agreement. Indeed,
Executrix acknowledges in her memorandum of law that she did not
advise respondent's counsel that she (Executrix) might want to
perfect her protective election under section 2032A once the
parties finally reached an agreement. With this in mind, we
refuse to allow Executrix to raise this issue at this time. The
agreement to settle this lawsuit, voluntarily entered into, must
be given binding effect. It is no answer to say that the need to
follow such a course could not have been ascertained until the
3 To qualify for special-use valuation under sec. 2032A,
property must satisfy a series of requirements, relating to (1)
the nature of the property itself, (2) its use on the date of the
decedent's death and during the immediately preceding 8-year
period, (3) the relationship between the decedent and the person
acquiring the property from the decedent, and (4) the fair market
value of the property as compared with the fair market value of
the decedent's adjusted gross estate (i.e., the 50 percent and 25
percent tests). See sec. 2032A(b).
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