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Several times in fall 1994, O'Donnell and other lawyers in
O'Donnell's law firm discussed with Mr. Newbern the possibility
of settling petitioners' cases. On January 31, 1995, O'Donnell
and respondent's counsel signed stipulations of settled issues in
these cases which resolved issues concerning Vanguard Oil
Technology's investment in the Elektra Hemisphere tax shelter for
1981 and 1982. O'Donnell promptly notified petitioners in
writing of the settlements. Petitioners knew the terms of the
settlements in February 1995. At a time not specified in the
record after he signed the stipulations of settled issues,
O'Donnell asked petitioners to ratify the stipulations in
writing. They did not do so. Petitioners retained new counsel
for these cases on November 17, 1995. O'Donnell withdrew as
petitioners' counsel on December 10, 1996.
2. Petitioners' Motion To Set Aside the Settlements
Petitioners filed a motion to set aside the stipulations of
settled issues on March 3, 1997, which was more than 2 years
after O'Donnell told petitioners the terms of the settlements.
We denied petitioners' motion because the consistent settlement
procedures of section 6224 apply only to partnership taxable
years beginning after September 3, 1982, and thus do not apply to
Elektra Hemisphere's 1981 and 1982 tax years. Estate of Campion
v. Commissioner, 110 T.C. 165 (1998). We also decided that
respondent had not committed fraud on the Court and that
petitioners were bound by the settlements with respect to the
Elektra Hemisphere partnership issues. We permitted petitioners
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