Hugh and Linda Janow - Page 6

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                                    TABLE 1 (In pertinent part)                                           
                                    ORDINARY SHORT TERM            LONG TERM                             
                        YEAR         ALLOWED     GAIN (LOSS)        GAIN (LOSS)                           
                        1980      (21,822)     22,966               3,104                                 
                  After the parties executed the Closing Agreement, respondent                            
            mailed to petitioners a proposed Decision and overpayment                                     
            Stipulation, together with the revised Computations.  Respondent,                             
            by letter, twice asked petitioners to execute and return the                                  
            proposed Decision and overpayment Stipulation.  Petitioners did                               
            not sign the proposed Decision and overpayment Stipulation.                                   
                  Nearly 2 years after the Computations had last been revised                             
            by the parties, petitioner advised respondent by letter that he                               
            believed the proposed Decision document and related Computations                              
            did not accurately reflect the terms of the Closing Agreement and                             
            consequently were unacceptable.  In essence, petitioner claimed                               
            for the first time that the Closing Agreement did not mandate                                 
            inclusion of the guaranteed payment petitioner actually received                              
            in 1980.                                                                                      
                  Section 7121(a) authorizes respondent to enter into an                                  
            agreement in writing with any person relating to the liability of                             
            such person in respect of any internal revenue tax for any                                    
            taxable period.  A Closing Agreement is binding on the parties as                             
            to the matters agreed upon and may not be annulled, modified, set                             
            aside, or disregarded in any suit, action, or proceeding, except                              

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