Estate of Donald H. Ray, Deceased, Patricia G. Ray, Independent Executrix, and Patricia G. Ray - Page 16

          was reached, but they interpret differently the Palka letter, the           
          Form 870-L(AD), and the Balboni letter to parallel their                    
          respective arguments as to when the agreement was reached.                  
               The parties argue at length how we should interpret the                
          Balboni letter, and specifically the sentence that reads:                   
          "The settlement agreement between you and the government will be            
          consummated only upon the execution of the Form 870-L(AD) by an             
          authorized representative of the government."                               
               The Balboni letter must be read in light of the Form 870-              
          L(AD), which contains the following:  "the undersigned offers to            
          enter into a settlement agreement"; "This offer is subject to               
          acceptance for the Commissioner"; "Unless and until it is                   
          accepted, it will have no force or effect"; "If this offer is               
          accepted for the Commissioner"; and "Date accepted for                      
          Commissioner".  After considering the Balboni letter and the                
          language in the Form 870-L(AD), we agree with respondent's                  
          interpretation.  The Form 870-L(AD) provided that petitioners               
          submit an offer to respondent.  See Gillilan v. Commissioner,               
          T.C. Memo. 1993-366; H Graphics/Access, Ltd. v. Commissioner,               
          T.C. Memo. 1992-345; Brookstone Corp. v. United States, 74 AFTR             
          2d 6025, 94-2 USTC par. 50,474 (S.D. Tex. 1994), affd. without              
          published opinion 58 F.3d 637 (5th Cir. 1995).                              
               Petitioners' reliance on Treaty Pines Invs. Partnership v.             
          Commissioner, 967 F.2d 206 (5th Cir. 1992), is misplaced.  The              
          court in Treaty Pines described the record as "sparse" but had              

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