- 12 - concession of some rights as a consideration for those secured and the settlement stipulation is entitled to all of the sanctity of any other contract.” Saigh v. Commissioner, 26 T.C. 171, 177 (1956). Absent wrongful misleading conduct or mutual mistake, we will enforce a stipulation of settled issues in accordance with our interpretation of its written terms. See Stamm Intl. 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). The stipulation was entered into fairly and freely by both parties. The stipulation of settled issues was filed after petitioner wrote a letter to the Clerk of the Court conceding respondent’s position that there is no reasonable cause exception for failing to revoke BP Concessions’ S corporation election. In that letter, petitioner stated that he wished to discontinue the case. The stipulation of settled issues was also filed after the Court held a telephone conference with the parties discussing this issue. Petitioner has not shown mutual mistake or misleading conduct or that he was unaware of the consequences of the stipulation. In the petition and at trial, petitioners’ only challenge to the underlying tax liability was that they were entitled to a reasonable cause exception on account of petitioner’s illness. On the basis of the stipulation of settled issues, we find thatPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
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