Thomas J. and Bonnie F. Ratke - Page 4

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               Respondent contends that the May 27, 1996, assessment was              
          taken into account in determining the deficiency stipulated by              
          the parties.  Petitioners, however, contend that the assessment             
          is invalid, pursuant to section 6213(a), and that their liability           
          is limited to the $2,931 set forth in the Court’s March 13, 1997,           
               The petition clearly reflects petitioners’ decision to                 
          contest the entire deficiency determined by respondent.  Thus,              
          the Court had jurisdiction to determine petitioners’ correct tax            
          liability relating to 1993.  See Naftel v. Commissioner, 85 T.C.            
          527, 533 (1985).  On March 13, 1997, the parties signed a                   
          settlement agreement, pursuant to which a decision was entered by           
          the Court.  This decision is final and binding on the parties               
          pursuant to the terms of their stipulation.  Accordingly,                   
          respondent may collect only $2,931, the amount set forth in the             
          Court’s March 13, 1997, decision.                                           
               Contentions we have not addressed are irrelevant, moot, or             

                                                  Decision will be entered            
                                             for petitioners.                         

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