-20-
F.2d at 323; Indep. Elec. Supply, Inc. v. Commissioner, 781 F.2d
at 726.
III. Petitioners’ Liability for Taxes on Interest Income and
Capital Gain
We next consider whether petitioners are liable for taxes on
interest income and capital gains they reported on their pro
forma returns, but that respondent erroneously omitted on
respondent’s initial Form 4549A. Petitioners argue that they had
a “deal” with respondent when they signed the Form 4549A and
executed a closing agreement. Petitioners further argue that
respondent should be prevented from asserting that petitioners
owe any amounts beyond those shown on the Form 4549A they signed.
Respondent, on the other hand, asserts that a Form 4549A is not
final and conclusive as to all issues. Moreover, respondent
argues that the closing agreement did not determine petitioners’
total tax liability for the years at issue. We agree with
respondent.
It is well settled that Forms 4549A do not bind the
Commissioner. Urbano v. Commissioner, 122 T.C. 384 (2004);
Hudock v. Commissioner, 65 T.C. 351, 362 (1975). Only closing
agreements entered into pursuant to section 7121 are binding on
the Commissioner as to a determination of the taxpayer’s final
tax liability. See Urbano v. Commissioner, supra at 393.
Petitioners executed a closing agreement on Form 906 with
respect to the abusive trust scheme. We found as a fact at trial
that the closing agreement was binding as to the matters
addressed in the agreement. This closing agreement, however,
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