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evidence, however, does not indicate that the four major agreed
adjustments constituted volunteered adjustments.
Further, even with regard to the so-called volunteered
adjustments, respondent’s representatives did not automatically
agree to the adjustments suggested by Exxon’s representatives.
Rather, as we have found, information with regard thereto was
reviewed and audited by respondent’s representatives, and the
amounts of the adjustments determined by respondent’s
representatives were set forth in the Forms 5701 that were
provided to Exxon.
Because the four major agreed adjustments represent
approximately 85 percent of the total of the agreed tax
deficiencies and because the balance of the agreed tax
adjustments were “similarly compromised”, Exxon argues that all
of the agreed adjustments should be treated as uncontested
adjustments. We disagree.
Not until the end of the audits are the adjustments in
question in these cases to be treated as agreed. That is when
the Forms 870 were entered into and/or the assessments were made.
By then, the adjustments were agreed to, and respondent
acknowledges that the all-events test was satisfied. Prior
thereto, the adjustments in question had been discussed,
proposed, negotiated, and subject to agreement and compromise on
factual issues such as the characterization of the costs. These
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