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there was a mutual mistake made in the stipulation process. See,
e.g., Graham v. Commissioner, T.C. Memo. 2005-68. We cannot read
the stipulation the estate cites as saying that the adjusted
values of NSP and Keeton Corrections together exceed 50 percent
of the adjusted gross estate because that is simply not what the
stipulation says. Even on brief, the estate continued to argue
that it satisfied the 50-percent test because “the combined value
of Keeton Industries and NSF exceeds 50 percent of the adjusted
gross estate.” Both the estate’s reliance on the stipulation and
its articulation of the 50-percent test in its briefs reflect a
misreading of the statute. Therefore, respondent did not concede
anything in the stipulation that contradicts what respondent is
arguing now--that the adjusted value of the interests does not
exceed 50 percent of the adjusted gross estate. The stipulation
of settled issues reflects that the parties agreed that the
estate was entitled to deduct a total of $732,000 for claims
against the estate which were not reported on the return but were
allowed in the notice of deficiency. These amounts significantly
reduced the adjusted value of the corporations and caused the
adjusted value of the corporations to fall below 50 percent. See
sec. 2057(d)(1).
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