-9-
is applicable to all matters concerning petitioner’s investment and
participation in the FoodSource program.
Section 7121(a) authorizes the Secretary of the Treasury or
his delegate to enter into written closing agreements with respect
to the tax liability of any person for any taxable period. Such
closing agreements are binding on the parties as to the matters
agreed upon and may not be annulled, modified, set aside, or
disregarded in any suit or proceeding unless there is a showing of
fraud, malfeasance, or misrepresentation of a material fact.8 Sec.
7121(b); Rink v. Commissioner, 100 T.C. 319, 324 (1993), affd. 47
F.3d 168 (6th Cir. 1995); Zaentz v. Commissioner, 90 T.C. 753, 760
(1988). A Form 906 is a final and conclusive agreement that is
binding only as to matters agreed upon for the taxable period
stated in the agreement. Estate of Magarian v. Commissioner, 97
T.C. 1 (1991); Zaentz v. Commissioner, supra at 761-762; sec.
301.7121-1(d)(1), Proced. & Admin. Regs. Closing agreements are
interpreted using ordinary contract law principles, which generally
require that we look within the “four corners” of the agreement.
Rink v. Commissioner, supra at 325.
The 1989 closing agreement is not a model of clarity. The
first introductory clause therein supports respondent’s position
that the closing agreement relates to a transaction (namely,
8 Neither party contends that fraud, malfeasance, or
misrepresentation of a material fact exist in this case.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011