Hugh and Linda Janow - Page 10

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            ending with or within that taxable year.  Sec. 1.706-1, Income                                
            Tax Regs.                                                                                     
                  We note that the guaranteed payment reported on petitioners'                            
            1980 Federal income tax return was accepted by respondent and was                             
            never in dispute until after the execution of the Closing                                     
            Agreement.  In the 2 years in which the parties negotiated the                                
            Computations, petitioners never raised any objections to either                               
            the original or the revised Computations with respect to the                                  
            failure to exclude the $20,000 guaranteed payment.  Clearly,                                  
            petitioners had ample time to review the Computations and to                                  
            request the necessary changes.                                                                
                  In any event, if the parties had intended to settle with                                
            respect to the exclusion of the $20,000 guaranteed payment, they                              
            would have included specific language to that effect.  They did                               
            not do so.  Absent specific language excluding the $20,000                                    
            guaranteed payment, the Closing Agreement must not be read to                                 
            imply its exclusion.  Accordingly, we hold that the Closing                                   
            Agreement does not require the $20,000 guaranteed payment to be                               
            excluded from income.                                                                         
                  To the extent we have not addressed petitioners' other                                  
            arguments, the Court finds them to be without merit.                                          

                                                             Decision will be entered                    
                                                        under Rule 155.                                   

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