Estate of Algerine Allen Smith - Page 10




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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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