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Commissioner, 71 T.C. 108, 111-112 (1978). The Court may vacate a final
decision if there has been a fraud on the Court. Abatti v. Commissioner, 859
F.2d 115 (9th Cir. 1988), affg. 86 T.C. 1319 (1986); Senate Realty Corp. v.
Commissioner, 511 F.2d 929, 931 (2d Cir. 1975); Stickler v. Commissioner, 464
F.2d 368, 370 (3d Cir. 1972); Toscano v. Commissioner, 441 F.2d 930 (9th Cir.
1971), vacating and remanding 52 T.C. 295 (1969).
The decision in this case was entered pursuant to a stipulated
settlement. There was no trial; no evidence was adduced; no stipulations were
filed in the record; and the stipulated decision does not recite any factual
or legal bases upon which the deficiency was settled. The compromise and
settlement of tax cases is governed by general principles of contract law.
Robbins Tire & Rubber Co., v. Commissioner, 52 T.C. 420, 435-436, supplemented
by 53 T.C. 275 (1969); Brink v. Commissioner, 39 T.C. 602, 606 (1962), affd.
328 F.2d 622 (6th Cir. 1964). Where a decision is entered pursuant to a
stipulated settlement, the parties are usually held to their agreement without
regard to whether the decision is correct on the merits. Stamm International
Corp. v. Commissioner, 90 T.C. 315, 321-322 (1988); Spector v. Commissioner,
42 T.C. 110 (1964).
It is within this framework that petitioner asks for leave to file the
Motion to Vacate. Petitioner contends that by failing to advise her of the
innocent spouse "opportunity", Mr. Stillman and the Hochman firm committed a
fraud on this Court sufficient to justify granting the two motions.
Petitioner asserts that Mr. Stillman purportedly perpetrated this fraud by
failing to send the MAR Memorandum to her, while the Hochman firm ignored the
fact that the Statement of Settlement was not signed by petitioner and
proceeded to carry out the settlement process.Initially, respondent
filed no objection to granting of the Motion for Leave, but Mr. Stillman filed
an objection. Petitioner objected and contended that Mr. Stillman had no
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