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asserted that the estate had not shown that its failure to pay
was due to reasonable cause.
Effective September 1, 1999, the Texas legislature amended
Tex. Govt. Code Ann. sec. 466.410 (Vernon Supp. 2001) to allow
assignment of future lottery payments. On September 9, 1999, the
estate appealed respondent’s abatement request denial and
asserted that, prior to the September 1 effective date, neither
the estate nor the partnership could have borrowed against the
lottery proceeds to pay the estate tax. Appeals, on February 10,
2000, concluded that the estate had sufficient liquidity to pay
the estate tax and sustained respondent’s denial of the request
for abatement.
V. Section 6330 Proceedings
On August 9, 2000, Appeals issued a Notice of Determination
Concerning Collection Action(s) Under Section 6320 and/or 6330
(determination), sustaining respondent’s collection efforts.
Appeals determined:
The North Texas Appeals office previously heard the
appeal and denied the extension after an administrative
conference in February of 1999. The Appeals Officer
found that the estate as of February 1999 had
sufficient cash flow to pay the taxes and/or had the
ability to borrow to pay the taxes.
During the course of the CDP proceeding you raised the
issue of abating the penalties under IRC �6551(a)(2).
Your request was referred to the North Texas District
of the I.R.S. for administrative consideration. Your
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