- 10 -
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.
Page: Previous 1 2 3 4 5 6 7 8 9 10
Last modified: May 25, 2011