- 3 - had recently reached a basis of settlement and would like additional time to submit to the Court a stipulated decision document reflecting that settlement. Subsequently, after trying unsuccessfully to secure a stipulated decision document from petitioner, respondent filed the instant motion with the Court. The motion states that the computations flowing from the settlement agreement result in a $33,146 deficiency in petitioner’s 1997 Federal income tax and a $8,286.50 addition thereto under section 6651(a)(1). In response to respondent’s motion, petitioner argues that the settlement agreement is incorrect in that the $30,000 of rental income shown in the agreement is already reflected in the $127,000 of gross receipts also shown in the agreement. Respondent argues that the $30,000 of rental income is in addition to the $127,000 of gross receipts. We have consistently held that settlement agreements are subject to the application of general principles of contract law. See Robbins Tire & Rubber Co. v. Commissioner, 52 T.C. 420, 435-436, supplemented by 53 T.C. 275 (1969). Absent a showing of lack of formal consent, fraud, mistake, or some other similar ground, a settlement agreement that has led to cancellation of the trial will be upheld. See Dorchester Indus. Inc. v. Commissioner, 108 T.C. 320 (1997), affd. 208 F.3d 205 (3d Cir. 2000). Petitioner claims that the Court should disregard thePage: Previous 1 2 3 4 Next
Last modified: May 25, 2011