Phillip and Gladies Aaron - Page 12

                                       - 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 that             






Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  Next

Last modified: May 25, 2011