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2. Standards for Vacating a Final Decision
Notwithstanding the authority to act on such a motion, the
authority of the Tax Court to vacate a decision that has become
final is limited. In Taub v. Commissioner, 64 T.C. 741 (1975),
affd. without published opinion 538 F.2d 314 (2d Cir. 1976), the
taxpayer in a deficiency case sought to vacate a decision that
had become final. We noted that as a general rule the finality
of a decision is absolute. Id. at 750; see also Lasky v.
Commissioner, 235 F.2d 97 (9th Cir. 1956), affd. per curiam 352
U.S. 1027 (1957); Abatti v. Commissioner, 86 T.C. 1319, 1323
(1986), affd. 859 F.2d 115 (9th Cir. 1988). We also noted that
“we have jurisdiction to set aside a decision which would
otherwise be final where there is ‘fraud on the court.’” Taub v.
Commissioner, 64 T.C. at 751 (citing Toscano v. Commissioner, 441
F.2d 930 (9th Cir. 1971)); Kenner v. Commissioner, 387 F.2d 689
(7th Cir. 1968); see also Drobny v. Commissioner, 113 F.3d 670
(7th Cir. 1997), affg. T.C. Memo. 1995-209; Senate Realty Corp.
v. Commissioner, 511 F.2d 929 (2d Cir. 1975).
In Abeles v. Commissioner, 90 T.C. 103 (1988), this Court
held that it had the authority to vacate an otherwise final
decision in a situation where the Court never acquired
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Last modified: May 25, 2011