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3. Pursuant to T.C. Rule 155, this Court entered
a decision in this case on August 7, 1996, determining
a deficiency of income tax due from Petitioner for the
taxable year ended December 28, 1985, in the amount of
$86,323,660. As a result of this Stipulation of
Settled Issue, the foregoing deficiency must be
recomputed pursuant to the parties’ stipulation of
basis in paragraph 1. The Court’s August 7, 1996
decision was accompanied by a stipulation signed by
Petitioner’s counsel and Respondent’s counsel on July
26, 1996, and August 2, 1996, respectively. The
stipulation accompanying the August 7, 1996 decision
[(1996 stipulation)] controls the manner in which the
income tax at issue for the 1985 taxable year will be
recomputed. The parties will expeditiously submit the
recomputed deficiency for the Court to enter pursuant
to Rule 155. [Emphasis added.]
For ease of reference, the Court provides a flowchart in the
appendix which lists the various steps in this litigation.
The Parties’ Positions
In the present Rule 155 computational dispute, respondent
arrives at a deficiency of $8,815,210 for the 1985 tax year,
while petitioner arrives at a $41,091,800 overpayment.11
11 Sec. 6211(a) defines a deficiency as the amount by which
the taxpayer’s tax liability exceeds the excess of:
(1) the sum of
(A) the amount shown as the tax by the
taxpayer upon his return, * * * plus
(B) the amounts previously assessed (or
collected without assessment) as a deficiency,
over–-
(2) the amount of rebates, as defined in
subsection (b)(2), made.
In describing their respective positions, the parties
(continued...)
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