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(2) The adjustments were raised by respondent in
written format in Forms 5701;
(3) Exxon did not indicate on the Forms 5701 agreement
to the adjustments;
(4) With few exceptions, Exxon did not provide any
other written statements to respondent of agreement to
the adjustments until the Form 870 agreements were
entered into; and
(5) In petitions filed in this Court for 1979 through
1982, Exxon did challenge a number of the so-called
agreed adjustments, contrary to Exxon’s claim that
these adjustments were routinely agreed to for each
year.
Based on the evidence before us, we conclude that the
statutory interest in question, relating to the agreed
adjustments and agreed tax deficiencies assessed by respondent
against Exxon at the conclusion of the audits for the years 1972
through 1978, does not satisfy the all-events test of section 461
and is not accruable until the end of the audits when Exxon, for
the years 1972 through 1977, reflected its agreement thereto in
the Form 870 agreements or, for 1978, when the assessment
occurred.
In light of our findings and conclusion set forth above, it
is not necessary to address other arguments made by respondent as
to the proper accrual of the interest in question.
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