Transpac Drilling Venture 1982-21, Asher Fensterheim, Charles L. Pincus, Thomas D. Callahan, Donald W. Dvorak, and Thomas J. Williams, Partners Other Than The Tax Matters Partner, et al. - Page 12

          The assessment of tax attributable to partnership items of a                
          partnership subject to the TEFRA provisions shall be made with              
          respect to any partner during the period provided by section                
          6229(a) through (f).  A settlement agreement converts partnership           
          items to nonpartnership items, and the partner that enters into             
          the settlement agreement is no longer treated as a party in the             
          partnership proceeding.  Secs. 6226(d)(1)(A), 6231(b)(1)(C).  The           
          period for assessment shall not expire before 1 year after the              
          settlement agreement is entered into.  Sec. 6229(f).                        
               Fensterheim argues that by virtue of settlement agreements             
          entered into with respondent for Transpac partnerships 1982-15              
          and 1982-21, he is no longer a party to these partnership                   
          proceedings.  Respondent argues that Fensterheim and respondent             
          have not entered into settlement agreements in Transpac                     
          partnerships 1982-15 and 1982-21, and, therefore, Fensterheim               
          remains a party to these partnership proceedings.                           
               General contract law principles govern tax case settlements.           
          Robbins Tire & Rubber Co. v. Commissioner, 52 T.C. 420, 435-436,            
          supplemented by 53 T.C. 275 (1969); Smith v. Commissioner, T.C.             
          Memo. 1991-412.  Where the intent of the parties to settle is               
          evident and the terms of the settlement are otherwise                       
          ascertainable, then a tax settlement agreement may be binding               
          even if it consists only of letters of offer and acceptance.                
          Treaty Pines Invs. Partnership v. Commissioner, 967 F.2d 206, 211           
          (5th Cir. 1992); Haiduk v. Commissioner, T.C. Memo 1990-506.                

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