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regarding the purpose and effect of section 7486 is pertinent to
the resolution of the estate’s motion for abatement of
assessments. In particular, we stated:
The language of section 7486 provides for abatement and
refund of the “amount of the deficiency determined” by
this Court that has been “disallowed in whole or in
part by the court of review”, regardless of whether the
taxpayer files a claim for relief. The statute simply
acts as a procedural device ensuring that the
Commissioner follows a decision of the court of review
in situations where it can be ascertained that all or a
part of the amount of the deficiency determined by this
Court was disallowed. Where the court of review
reverses and remands but does not indicate that any
ascertainable “amount” of the previously determined
deficiency has been precluded, it cannot be said that
the court of review has “disallowed in whole or in
part” the “amount of the deficiency determined by the
Tax Court.”
In the instant case, the Court of Appeals reversed
and remanded with instructions regarding the proper
evidence to consider for valuing Exxon's claim against
the estate. The Court of Appeals made no finding
regarding the correct value of the Exxon claim, nor did
it preclude an ultimate finding of value that would
result in the same deficiency amount contained in our
prior decision. The Court of Appeals simply held that
post-death events, such as the settlement of the Exxon
claim, should not be considered in making the valuation
determination. The Court of Appeals remanded with
instructions to make the valuation based on facts that
existed on the date of decedent's death. The amount of
the prior deficiency determination was not disallowed
in whole or in part.
Id. at 345.
Our interpretation of section 7486 as articulated in Estate
of Smith v. Commissioner, 115 T.C. at 345, is consistent with the
interpretation of that provision by the Court of Appeals for the
Seventh Circuit in Tyne v. Commissioner, 1969-2 USTC par. 9508
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