- 8 -
stipulations to be bound are dispositive of all issues concerning
the qualified status of the plan. Respondent contends that the
parties “effectively agreed that the party that prevailed with
respect to the issue of plan qualification in docket No. 18155-
96R will also prevail in this case”. Petitioners do not dispute
that they are bound by the stipulations.4 Instead, petitioners
dispute the calculations that result from the declaratory
judgment, arguing that while the plan was disqualified for the
taxable year ended June 30, 1986, the plan was qualified for all
years ending thereafter.
The stipulations of settled issues and the stipulations to
be bound provide that all of the remaining issues in these cases
shall be resolved on the same basis as those issues are finally
resolved in the declaratory judgment. We concluded in the
declaratory judgment, and the Court of Appeals for the Eighth
Circuit affirmed, that the annual additions allocated to Mr.
Clendenen during each of the plan years 1987 and 1989, the years
in dispute in the instant case, exceeded the section 415 limits;
4 Even if petitioners sought relief from the stipulations,
they would not prevail because they have not shown that
settlement was the result of mutual mistake or that manifest
injustice will result if we enforce the stipulations. See Rule
91(e); Stamm Intl. Corp. v. Commissioner, 90 T.C. 315, 321
(1988); Adams v. Commissioner, 85 T.C. 359, 375 (1985); Korangy
v. Commissioner, T.C. Memo. 1989-2, affd. 893 F.2d 69 (4th Cir.
1990).
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011