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regarded as unsettled and contested. The language of the
regulation indicates only what is “sufficient” to commence a
contest and does not purport to be exhaustive. See Consolidated
Indus., Inc. v. Commissioner, 82 T.C. 477, 483 (1984), affd.
per curiam 767 F.2d 41 (2d Cir. 1985). In our opinion, the key
portion of the above regulatory language is that found in the
last sentence, namely, what do the “facts and circumstances” of
each situation establish? As stated in Phillips Petroleum Co. &
Affiliated Subs. v. Commissioner, T.C. Memo. 1991-257:
Ultimately, a determination must be made, based upon a
consideration of all the facts and circumstances.
Exxon alleges that the adjustments in question (and
therefore the statutory interest) should be treated as automatic
and uncontested, that the existence and amount of the adjustments
should be regarded as simply a matter of gathering information
from Exxon's worldwide operations, and that when the figures were
finalized with regard to the tax adjustments, the adjustments
should be regarded as relating back and as having been fixed,
definite, and uncontested from the end of the tax years to which
they relate. Accordingly, Exxon argues, the related statutory
interest should relate back and should be accruable ratably for
each year from the due dates of the tax returns to which the tax
adjustments relate. We do not agree.
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