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implemented by a closing agreement, respondent refused.
Nevertheless, a binding settlement existed because the parties
intended such an agreement.
C. Settlement Offer That Petitioners Accepted in January 1988
Was Properly Authorized
Respondent argues that the settlement with petitioners is not
binding because Mr. Kletnick was not authorized to settle
nondocketed years. Under section 7121 a taxpayer may enter into an
agreement with the Secretary relating to the taxpayer's liability
for any internal revenue tax for any period, and such a closing
agreement will be final and conclusive in the absence of fraud,
malfeasance, or misrepresentation of a material fact. The
Secretary has delegated to the Commissioner the authority to enter
into such closing agreements.5 Paragraph 2 of Delegation Order No.
97 (Rev. 27), effective October 31, 1987, Handbook of Delegation
Orders, Internal Revenue Manual, amended and supplemented by
Delegation Order No. 225 (Rev. 1), 52 Fed. Reg. 13008 (Apr. 20,
1987), authorizes Associate Chief Counsels to enter into and
approve agreements "with any person * * * for a taxable period or
periods ended prior to the date of agreement". That authority is
not limited to docketed years. Paragraph 4 of the Delegation Order
5 Sec. 7851(b)(3); Treas. Dept. Order No. 150-32, 1953
CCH par. 3592, 1953 P-H par. 76,756; Treas. Dept. Order No. 150-
36, 1954-2 C.B. 733.
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