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Court, citing sections 7485 and 7486, stated that the assessment
and collection efforts of the Commissioner may be stayed only by
the posting of a bond unless disallowance is made by the court of
review. See Denison v. Barlow, 563 F. Supp. 263, 264 (E.D. Ark.
1983). The District Court held that “no disallowance” was made
when the Court of Appeals reversed and remanded for further
proceedings. Id.
In an analogous situation, we considered whether a reversal
and remand for further proceedings required the Commissioner to
release a surety bond filed by the taxpayer. See Jacobson v.
Commissioner, 97 T.C. 425 (1991). In Jacobson, a bond was filed
pursuant to section 7485 in order to stay the assessment and
collection of deficiencies during the pendency of the appeal.
The Court of Appeals reversed and remanded for further
consideration, and the taxpayer filed a motion for release of the
bond. See id. at 426. The surety bond specified in section 7485
acts as security until “payment of the deficiency as finally
determined”. Sec. 7485(a)(1). We held that the surety bond
could not be released before the proceedings on remand were
concluded because the deficiency had not been “finally
determined”. Jacobson v. Commissioner, supra at 427. This
interpretation of section 7485 is consistent with denying relief
under section 7486 when the court of review reverses and remands
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