Bernhard F. and Cynthia G. Manko - Page 19

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          Gulfstream Land & Dev. Corp. & Subs. v. Commissioner, 71 T.C. 587,          
          596 (1979).  Summary judgment is intended to expedite litigation and        
          avoid unnecessary and expensive trials.  Florida Peach Corp. v.             
          Commissioner, 90 T.C. 678, 681 (1988).                                      
               We discussed in Manko I the nature of, and requirements for,           
          binding settlement agreements.  Essentially, the compromise and             
          settlement of tax cases is governed by general principles of                
          contract law.  Dorchester Indus., Inc. v. Commissioner, 108 T.C.            
          320, 330 (1997).                                                            
               A.  Scope of the Settlement Agreement                                  
               The evidence clearly establishes that there was one blanket            
          settlement between respondent and petitioners (that respondent              
          offered to all Arbitrage Management investors in December 1987)             
          encompassing all years (both docketed and nondocketed) in which             
          petitioners claimed Arbitrage Management partnership loss                   
          deductions.  It was a package settlement.  The settlement resolved          
          an issue (i.e, the deductibility of Arbitrage Management losses)            
          rather than a specific taxable year.  Moreover, the offer was               
          available to petitioners, who were members of a class to whom the           
          offer was extended, on the same terms that were available to all            
          other Arbitrage Management investors.  Petitioners accepted the             
          blanket settlement offer referred to in Ms. Kaplan's January 15,            
          1988, acceptance letter.  That letter clearly stated that the               







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