- 9 - later contended as an alternative argument that petitioners had failed to show that the Israeli tax payments satisfied the creditability requirements of section 901 and the regulations thereunder. We did not reach this argument in our previous opinion as it was mooted by our decision relating to the source of petitioners’ income. Here then is the situation with which we are now faced. A plain reading of the parties’ stipulations would seem to indicate that respondent did not reserve the right to question the nature of the remittances to Israel when he stipulated that they were “Israeli Income Tax Paid”. Such, in turn, appears to have lulled petitioners into assuming that respondent had conceded the payments to be foreign income taxes as required for either a credit or the alternative deduction. Consequently, petitioners further assumed, the factual predicate having been established, that the deductions fell within the standard for items which may be taken into account under Rule 155. Under Rule 155, the parties “submit computations pursuant to the Court’s determination of the issues”. Rule 155(a). Thus the Rule constitutes “the mechanism whereby the Court is enabled to enter a decision for the dollar amounts of deficiencies and/or overpayments” resulting from the Court’s substantive disposition. Cloes v. Commissioner, 79 T.C. 933, 935 (1982). A Rule 155 proceeding is an appropriate vehicle for dealing with “‘purelyPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
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