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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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Last modified: May 25, 2011