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With regard particularly to the four major agreed
adjustments, we note the series of post-tax-return events that
had to occur in order to establish Exxon’s liability with regard
thereto. Additional information had to be gathered from Exxon’s
many units and affiliated companies. That information had to be
organized and analyzed by Exxon’s representatives and submitted
to and audited by respondent’s representatives. Discussions and
negotiations with regard to the information had to occur.
Disagreements with regard to characterization questions had to be
resolved. Any disagreements had to be negotiated, and agreements
reached or not reached. All of these activities or events
occurred during the audits, years after the consolidated
corporation income tax returns were filed.
Exxon argues that for each year 1972 through 1978, of
necessity and in spite of good faith and reasonable efforts to
file more complete and accurate income tax returns by the due
dates thereof, Exxon's representatives who were in charge of
preparing and filing Exxon’s income tax returns knew and
understood that adjustments to the income tax returns would be
necessary and that appropriate and agreed adjustments to the tax
returns were to be communicated and volunteered to respondent’s
representatives by Exxon’s representatives either formally via
amended returns or informally during the audits of Exxon's tax
returns. This may be true for certain adjustments. The
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