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In September 2003, respondent notified the estate that he
had received the estate’s notice of election. Respondent stated
that because of the election, the estate was required to either
post a bond, or in lieu of a bond, elect to provide a special
lien under section 6324A. By letter dated September 8, 2004, the
estate requested that “the government exercise its
Congressionally mandated discretion and not require the posting
of a bond or the imposition of a Section 6324A lien in this
case.” The estate provided the following reasons.3
(1) The estate had explored the possibility of posting a
bond but was unable to find a bonding company willing to
underwrite the amount in question for the duration of the 10-year
installment payment period under section 6166(a). Further, even
if the estate were able to obtain a bond, the estate’s advisors
believed that the cost would be prohibitive.
(2) The assets of the estate are part of a well-established
family-owned business, and decedent’s only child has continued
the ownership and management of the business. The estate’s
assets consist of interests in valuable, well-managed, and
profitable active real estate and provide assurance that adequate
3There is insufficient evidence in the record to permit the
Court to evaluate the merits of the arguments the estate makes in
the letter; the letter is reproduced only for purposes of
establishing what information respondent was presented with in
order to evaluate the necessity of a bond or a lien.
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