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bars him from contesting the deficiencies and additions to tax
for 1987 as stipulated by Kathleen Pert for herself and Timothy
Riffe. Petitioner urges us to reconsider those cases.
One of the requirements for res judicata to apply is that
the earlier proceeding must have resulted in a final judgment on
the merits. Commissioner v. Sunnen, 333 U.S. 591 (1948); Peck v.
Commissioner, 90 T.C. 162, 166 (1988), affd. 904 F.2d 525 (9th
Cir. 1990); Gammill v. Commissioner, 62 T.C. 607, 613 (1974).
Petitioner asserts that it is at best a legal fiction to treat a
stipulated decision as a judgment on the merits. Petitioner
asserts that Kathleen Pert agreed to the stipulated decision
because she lacked funds, and that she filed bankruptcy 8 months
after the stipulated decision was entered. In spite of
petitioner's argument, we decline to reconsider the well-
established principle that a Tax Court decision entered pursuant
to the stipulation of the parties is considered to be judgment on
the merits for purposes of res judicata. See Baptiste v.
Commissioner, supra at 1539-1541; see also United States v. Intl.
Building Co., 345 U.S. at 506.
To reflect the foregoing,
Orders will be issued
granting respondent's motions
for partial summary judgment.
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