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consideration. Sec. 6512(b); Barton v. Commissioner, 97 T.C.
548, 552-554 (1991).
The validity of the assessment is therefore a matter that
could have been raised and litigated in connection with the
deficiency proceeding, which involved the identical parties and
the same tax year. Accordingly, because the decision in that
case was not appealed and has since become final, res judicata
precludes petitioner from now disputing the validity of the
underlying 1985 assessment in this collection action.
Petitioner’s sole argument on brief with respect to res
judicata rests on his complaint that the 1985 case was concluded
by a stipulated decision. Petitioner states in this regard:
“There are no details presented to Court as to what was
considered to reach that stipulation between the parties; res
judicata depends upon judgment on the merits. In that case the
judgment was entered by practice, and or [sic] procedure which is
distinguished from judgment on merits.”
Contrary to petitioner’s position, however, it is well-
settled, blackletter law that “For res judicata purposes, an
agreed or stipulated judgment is a judgment on the merits.”
Baker v. IRS, 74 F.3d 906, 910 (9th Cir. 1996); see also United
States v. Intl. Bldg. Co., 345 U.S. 502, 503-506 (1953)
(upholding res judicata effect of stipulated Tax Court decisions,
regardless of whether the underlying agreement reached the
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