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particular year.” Erickson v. United States, 159 Ct. Cl. 202,
309 F.2d 760, 767 (1962); see Naftel v. Commissioner, 85 T.C.
527, 533 (1985).
An agreed or stipulated judgment is a judgment on the merits
for purposes of res judicata. Baker v. IRS, 74 F.3d 906, 910
(9th Cir. 1996), and cases there cited. It follows that, for res
judicata purposes, the decision incorporates those elements that
the parties have settled by stipulation as well as those that
have been redetermined by the Court.
Res judicata is essentially a court-created rule.
Commissioner v. Sunnen, 333 U.S. at 597. Although the general
outlines of the rule are relatively straightforward, the details
applicable in certain cases may be quite intricate. See, e.g.,
the discussion in Hemmings v. Commissioner, 104 T.C. at 230-235.
In addition, the Congress sometimes enacts legislation that
overrides or modifies res judicata. See, e.g., Burke v.
Commissioner, 105 T.C. at 47 (opinion of the Court), 52 (Chabot,
J., concurring), 62-63 (Swift, J., concurring in the result
only).
B. Innocent Spouse
Under the law before the 1998 Act, the cause of action in
the 1989 case included the possibility of innocent spouse relief.
Thus, but for the 1998 Act, the resolution of the 1989 case by
entry of decision which became final would have precluded
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