Nestle Holdings, Inc. - Page 13




                                               - 13 -                                                  
            Corp. v. Commissioner, 90 T.C. 315, 322 (1988); Korangy v.                                 
            Commissioner, T.C. Memo. 1989-2, affd. 893 F.2d 69 (4th Cir.                               
            1990).  However, we will not force a settlement on the parties                             
            where no settlement was intended.  See Autera v. Robinson, 419                             
            F.2d 1197 (D.C. Cir. 1969).                                                                
                  B.  Analysis of Settlement Agreements                                                
                  The issue before us is whether the subsequent tentative                              
            refund should be subtracted from the tax assessed and paid for                             
            1985, the result of which is a deficiency.  When we examine the                            
            language used in the 1999 stipulation, we find that it does not                            
            specifically provide for the tax assessed and paid for the 1985                            
            year to be reduced by the subsequent tentative refund.  The                                
            relevant portion of the 1999 stipulation does state that the                               
            “income tax at issue” for the 1985 year should be computed                                 
            according to the 1996 stipulation.15                                                       
                  The 1996 stipulation provides that as to the 1983, 1984, and                         
            1985 tax years, petitioner should not be given credit for                                  
            carrybacks which are not in issue (i.e., the carrybacks should                             
            not be considered in determining taxable income and the                                    
            corresponding tax liability).  The 1996 stipulation also states                            
            that the 1983 and 1984 tax assessed and paid should be reduced by                          



                  15  We believe that the reference in par. 3 of the 1999                              
            stipulation indicating that the deficiency be computed according                           
            to par. 1 refers to par. 1 of the 1999 stipulation and not the                             
            1996 stipulation.                                                                          





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