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payments petitioners received from Securities in 1980 and 1981
and reported on their returns for those years.
After reviewing the record, we find that petitioners
correctly reported the guaranteed payments on their 1980 and 1981
returns; that respondent made no adjustments with respect to
those guaranteed payments; that the petition does not raise any
issue as to the guaranteed payments; and that the answer does not
raise such an issue. In short, the guaranteed payments should
not be an issue before this Court. Nevertheless, inasmuch as the
parties have addressed the matter otherwise, we shall do
likewise. We shall consider the issue as tried by consent.
Rule 41(b)(1).
Respondent initially prepared computations, which included a
Statement of Account and Audit Statement (the Computations).
Over a period of months, the parties revised their Computations.
The Computations did not make any adjustments to the guaranteed
payments reported as income by petitioners in 1980 and 1981.
Over a year later, the parties prepared a Stipulation of
Settled Issues with regard to the Securities issues
(Stipulation). The Stipulation was filed by this Court and
provides, in pertinent part, that:
1. Attached hereto as Exhibit A is a copy of
fully executed Forms 906, Closing Agreement on Final
Determination Covering Specific Matters relating to the
petitioners' interest and agreed treatment of items of
income, gain, loss or deduction arising as a result of
their direct or indirect investments in Securities
Arbitrage Co. Exhibit A resolves the tax aspects of
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