Hugh and Linda Janow - Page 4

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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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