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which was an estimate of the estate tax deficiency and interest.4
On April 10, 1998, the estate filed a timely notice of
appeal. The estate did not file a bond pursuant to section 74855
in order to stay the assessment or collection of the deficiency
during the pendency of the appeal. On May 12, 1998, respondent
assessed an estate tax deficiency in the amount of $564,429.87
plus interest in the amount of $410,848.76. Respondent gave the
estate credit for the March 31, 1998, payment of $646,325.76 and
also gave the estate credit for an overpayment of income tax
determined in docket No. 3976-95 in the amount of $63,052,
resulting in a balance due of $265,900.87. Collection of the
balance due was administratively stayed during the pendency of
the estate’s appeal.6
On December 15, 1999, the Court of Appeals for the Fifth
Circuit reversed, vacated, and remanded for further proceedings
with respect to the estate tax deficiency. See Estate of Smith
4Respondent’s Appeals Office estimated this amount. As
part of the estimate, respondent allowed a deduction from the
estate for estimated interest which would be due on the
deficiency determined, as of a hypothetical date of payment of
Mar. 31, 1998.
5Sec. 7485(a) provides that the appeal of a decision of this
Court does not operate as a stay of assessment or collection of
any portion of a deficiency unless a bond is filed by the
taxpayer.
6Respondent has represented that collection of the unpaid
assessment remains administratively stayed and that no collection
activity is currently taking place.
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