Anyone that has ever represented a taxpayer in an IRS exam eventually has seen the IRS Form 4549 which is used by the IRS agent to indicate the proposed assessment in cases where the parties are expected to agree to the amounts.  The second page of the form contains a signature block for the taxpayer to sign to agree not to contest the amounts on the form. 

In the case of Hinkle, et al v. United States, US DC NM, Case No. 1:16-cv-01048 KG/SCY the taxpayer protested that they signed the Form 4549 after receiving what they believed were assurances from the IRS agent that no penalties would be assessed for the years in question.  Despite that, just after they had signed the forms they were notified the IRS was considering assessing penalties under IRC §6707A. 

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In the case of Davis v. United States, CA9, No. 13-16458, 117 AFTR 2d ¶ 2016-368 there was no question the IRS had failed to comply with a closing agreement reached with the partnership of which Mr. and Mrs. Davis were partners (with the “Mr. Davis” being Al Davis, long time controlling partner of the Oakland/Los Angeles Raiders during his life).  But the matter to be decided was whether the IRS’s failure to follow that agreement meant the assessment against Mr. and Mrs. Davis as partners was invalid.  Or, in the alternative, did the closing agreement constitute an agreement with the partners that triggered a shorter statute that the IRS had missed, also rendering the assessment invalid.