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tentative refunds. In computing the deficiency and overpayment
for 1985, however, the parties did not address in the 1996
stipulation whether a tentative refund for 1985 was to be treated
as a reduction to the tax assessed and paid for 1985.
Although it is evident from both stipulations that the 1985
tax liability should be computed without considering the
carrybacks not in issue, it is unclear from the stipulations
whether the parties also meant for a tentative refund for 1985 to
reduce the tax assessed and paid. Because the parties have not
clearly set forth the substance of their agreement and since we
cannot discern the intent of the parties from the ambiguous
language of the stipulations, we will not construe an agreement
to exist with regard to the disputed issue.
Having concluded that the 1996 and 1999 stipulations do not
address the issue of whether to treat the subsequent tentative
refund as a reduction to the tax assessed and paid, we would
normally look to relevant statutory and case law to determine how
to treat the subsequent tentative refund in the deficiency
computation. However, because respondent has conceded an
overpayment of $36,441,904 in the event that the Court does not
sustain his interpretation of the settlement agreements, we hold
that petitioner is entitled to a refund of $36,441,904.16
16 Petitioner agrees that the cash or credit refund should
be $36,441,904.
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Last modified: May 25, 2011