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redetermined in our Decision, see sec. 7485(a),16 and respondent
was not unreasonable to have done so.
On June 21, 1996, the Court of Appeals decided Adler v.
Commissioner, supra. Petitioners contend that it was
unreasonable for respondent to pursue further collection after
that date. In contrast, we conclude that it was unreasonable for
respondent to pursue further collection after October 1, 1996.17
16 Sec. 7485 provides, in relevant part, as follows:
SEC. 7485 BOND TO STAY ASSESSMENT AND COLLECTION.
(a) Upon Notice of Appeal.--Notwithstanding any
provision of law imposing restrictions on the
assessment and collection of deficiencies, the review
under section 7483 shall not operate as a stay of
assessment or collection of any portion of the amount
of the deficiency determined by the Tax Court unless a
notice of appeal in respect of such portion is duly
filed by the taxpayer, and then only if the taxpayer--
(1) on or before the time his notice of
appeal is filed has filed with the Tax Court a
bond in a sum fixed by the Tax Court not exceeding
double the amount of the portion of the deficiency
in respect of which the notice of appeal is filed,
and with surety approved by the Tax Court,
conditioned upon the payment of the deficiency as
finally determined, together with any interest,
additional amounts, or additions to the tax
provided for by law * * *
17 We need not decide whether it was unreasonable for
respondent to pursue further collection between June 21, 1996,
and Oct. 1, 1996, because that issue appears to be moot. In this
regard, we note that during such period petitioners did not incur
any attorney's fees and that the only cost in respect of which
petitioners seek reimbursement appears to represent a $65 payment
for Westlaw service related to petitioners' reply brief filed in
the Court of Appeals before Adler v. Commissioner, 86 F.3d 378
(4th Cir. 1996), was decided. Cf. Estate of Perry v.
(continued...)
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