Mun Li Fong - Page 17

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          Partnership) that was not substantially justified.  See sec.                
          7430(c)(4)(B).                                                              
               We reject respondent’s argument.  The fact that parties to             
          litigation, in the manner and method by which they settle issues            
          and disputed tax adjustments, should take into account and should           
          anticipate the specific requirements of the mitigation provisions           
          is not new.  We find no merit in respondent’s argument.  See Hill           
          v. Commissioner, T.C. Memo. 1957-2, in which a particular                   
          adjustment was litigated solely in order to obtain an adverse               
          determination under the mitigation provisions necessary to open             
          an otherwise closed year.                                                   
               No relevant material facts are in dispute in the instant               
          case regarding the content of the settlement stipulation filed              
          and the decision entered in the 1989 Fong case that would                   
          preclude a ruling on the narrow issue presented to us in                    
          petitioner’s motion.  Under the terms of the settlement                     
          stipulation that was filed with the Court and the decision that             
          was entered, no tax bases in the properties were determined by              
          the Court.  The tax adjustments reflected therein clearly cannot            
          be said to encompass a determination by the Tax Court of                    
          petitioner’s tax bases in the properties.                                   
               The possibility that petitioner and respondent, in settling            
          the 1989 Fong case, may have entered into further or additional             
          agreements not reflected in the stipulation of settlement or in             





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