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for excise tax, which, if signed, extended the periods of
limitations for both to December 31, 1983. Id., 71A AFTR 2d at
93-3589, 91-1 USTC at 87,720.
On April 7, 1983, the taxpayer’s attorney in Gibson Found.
returned the two executed separate Forms 872 with a cover letter
to the Appeals officer which stated:
The execution and filing of the consents are conditioned
upon the following compromise of this case which we agreed
to this morning:
(1) The income tax deficiency under Section 511 will be
reduced by the sum of $8374.54 * * *
(2) The Foundation agrees to a deficiency of 35% of the
Section 4945(a) tax or $14,584.33.
Id., 71A AFTR 2d at 93-3589, 91-1 USTC at 87,720.
One day after the May 15, 1983, period of limitations had
expired, unless extended to December 31, 1983, by the Forms 872,
the Appeals officer, for some unknown reason, proposed an
entirely different settlement of the excise tax; i.e., 65 percent
of the excise tax. Id., 71A AFTR 2d at 93-3589, 91-1 USTC at
87,721. The Appeals officer, thereafter, refused any attempt to
settle the excise tax issue at the amount specified in the
taxpayer’s cover letter. Id.
The District Court treated the income tax and excise tax
issues separately. Id., 71A AFTR 2d at 93-3591 to 93-3592, 91-1
USTC at 87,722 to 87,723. The District Court enforced the
settlement on the income tax issue because neither party disputed
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