Richard W. Kochansky and Monica L. Miller, f.k.a. Monica L. Kochansky - Page 8

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                  record, but Petitioner does not presently have a transcript                         
                  copy to attach hereto.                                                              
                        5.  In light of Petitioner's intent, the direction of                         
                  Judge Couvillion and Petitioner's right to due process,                             
                  Petitioner desires that this case proceed to trial on other                         
                  issues, and that Respondent's Motion for Entry of Decision                          
                  be denied.                                                                          
                  Petitioner misconstrues what the Court said or indicated at                         
            the time the stipulation was filed.  The Court intended to allow                          
            petitioner the opportunity to litigate other issues in the                                
            instant case, which were unrelated to the issues in the 1987                              
            case, if there were any unrelated issues.  At the time, the Court                         
            had not compared the opinions of this Court and the Court of                              
            Appeals as to the 1987 case with the pleadings in the instant                             
            case for the years 1988, 1989, and 1990.  A review of both court                          
            opinions regarding petitioner's 1987 tax year and the pleadings                           
            in the instant case for the subsequent years indicates that there                         
            are no unrelated issues to be heard.  The instant case involves                           
            the same issue that was decided by this Court and affirmed by the                         
            Court of Appeals.  Kochansky v. Commissioner, T.C. Memo. 1994-                            
            160, affd. in part, revd. in part 92 F.3d 957 (9th Cir. 1996).                            
            The stipulation in the instant case states unequivocally that the                         
            parties agreed "to be bound to the final outcome" of the 1987                             
            case.  There were no qualifying conditions or provisions in the                           
            stipulation of the instant case that would allow petitioner to                            
            assert a different legal theory as to the character of the income                         
            at issue for the years 1988, 1989, and 1990.                                              




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