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elapsed before respondent made an assessment was attributable to
the partnership litigation, and petitioner’s 1983 tax liability
was assessed within 1 year of the partnership litigation’s
conclusion pursuant to section 6229(d). Citing Beagles v.
Commissioner, T.C. Memo. 2003-67, respondent further contends
that (1) the mere passage of time during the litigation phase of
a tax dispute does not establish a delay in performing a
ministerial act, and (2) decisions on how to proceed during the
litigation phase require the exercise of judgment and are not
ministerial acts.
3. Reasonableness of Respondent’s Position
Although we agree with respondent that decisions on how to
proceed during litigation are not ministerial acts, see id.,
petitioner’s taxable year 1983 was not involved in the
partnership litigation. To the contrary, in 1985, petitioner
signed settlement agreements, the terms of which settled all
taxable years after 1982 with respect to Boulder. The settlement
agreements constituted binding agreements between petitioner and
respondent. See sec. 6224(c)(1). The legal effect of the
settlement agreements was that the partnership items converted to
nonpartnership items, and respondent had 1 year in which to
assess any income tax liabilities for taxable years included
under the settlement agreements’ terms. See secs. 6229(f),
6231(b)(1)(C). Respondent, however, did not assess petitioner’s
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