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would be required to be offset against the deficiency
amounts set forth above, and if so, the amount of any
such loss for each year.
OPINION
A. Whether Petitioner Is Bound by the Stipulation of Settled
Issues
At trial, petitioner moved that he not be bound by the
stipulation of settled issues because the amounts to which he
agreed were incorrect. He contended that the settlement did not
take into account payments that he claims he made to the
Fireman’s Fund in 1986 in the amount of $677,000 and in January
1997 in the amount of $300,000.1
We denied petitioner’s motion at trial because respondent
would have been prejudiced if we did not enforce the stipulation.
Respondent relied on the settlement as shown by the fact that, in
the pretrial memo, respondent listed no witnesses for trial; in
contrast, respondent had listed 10 witnesses in a prior pretrial
memo filed before the parties signed the stipulation of settled
issues.
General principles of contract law govern the compromise and
settlement of Federal tax cases. Dorchester Indus. Inc. v.
Commissioner, 108 T.C. 320, 329-330 (1997), affd. 208 F.3d 205
(3rd Cir. 2000). We enforce a stipulation of settled issues
1 Petitioner testified that he paid $300,000 to Magistrate
Hamilton’s court (not otherwise identified in the record).
However, he did not indicate that the payment was for Arcanum or
why he paid this amount after its bankruptcy case had closed.
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