Hugh and Linda Janow - Page 4

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                  After reviewing the record, we find that petitioners                                    
            correctly reported the guaranteed payment on their 1980 return,                               
            that respondent made no adjustments with respect to the                                       
            guaranteed payment, that the petition does not raise any issue as                             
            to the guaranteed payment, and that the answer does not raise                                 
            such an issue.  In sum, the guaranteed payment should not be an                               
            issue before this Court.  Nevertheless, inasmuch as the parties                               
            have addressed the matter otherwise, we shall do likewise.  We                                
            shall consider the issue as tried by consent.  Rule 41(b)(1).                                 
                  Respondent initially prepared computations, which included a                            
            Statement of Account and Audit Statement (Computations).  Over a                              
            period of months, the parties revised the Computations.  The                                  
            Computations did not reflect any adjustments to the guaranteed                                
            payment reported as income by petitioners on their 1980 return.                               
                  In the Form 906, Closing Agreement On Final Determination                               
            Covering Specific Matters (the Closing Agreement), the parties                                
            agreed to the following pertinent matters:                                                    
                        WHEREAS, there now exists a dispute between the                                   
                  taxpayer(s) and the Commissioner of the Internal                                        
                  Revenue with respect to the taxability of the                                           
                  taxpayers' distributive share of gains and losses from                                  
                  listed entity(ies) [hereinafter "the partnership(s)"]                                   
                  arising from securities trading transactions conducted                                  
                  through Arbitrage Management for all taxable years and;                                 
                        WHEREAS, the taxpayer and the Commissioner wish to                                
                  determine with finality all of the federal income tax                                   
                  consequences of the taxpayers' interest in the                                          
                  partnerships for all taxable years (listed below);                                      

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