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was necessary to effect a settlement of a partner's various
liabilitiies.12
Although there may have been a general understanding of the
terms of the settlement, to effectuate the settlement it was
understood that the partner would execute either a Form 870 or a
closing agreement. Mr. Redding testified that he had been in
contact with both Mr. Long and Mr. Faber concerning the
settlement of these cases during this period. Mr. Redding, with
his experience in TEFRA proceedings, surely was aware of the
circumstances, and we find it improbable that, given the
complexity of the settlement, at some time, there had not been
some discussion on how the settlements were to be consummated.
While as a general rule neither document may be required to
settle pecuniary items, all parties understood that one or the
other was necessary to give effect to the settlement of the
instant cases.
In sum, the Goodwins may have attempted to settle their
cases. It is clear, however, that all the parties directly
connected with the settlement negotiations understood that to
effectuate the settlement either a closing agreement or a Form
870 had to be executed. It is also clear that the Goodwins never
12
Whether this opinion was correct or not is beside the
point.
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