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funds will be available to pay the estate tax liability,
therefore mitigating any default risks.
(3) Edward P. Roski, Jr., the son of decedent and the
executor of the estate, is a highly respected businessman who at
all times has fulfilled his tax obligations.
(4) The Government already has security for the payment of
the estate’s deferred taxes in the form of the statutory lien
provided for under section 6324. The lien is in effect until
2010 and is a personal liability of the executor, as well as of
all the other transferees of the estate.
(5) The imposition of the special lien in lieu of a bond
would adversely affect the estate’s ability to carry on the
closely held businesses that ultimately are to provide the funds
from which the estate’s deferred taxes would be paid. Without
the interference of the special lien, the estate will have the
cashflow to pay the installments as they become due.
(6) The imposition of a special lien, in lieu of a bond,
against the estate’s assets would violate covenants in
partnership agreements that affect the estate’s interests in
those assets and could lead to litigation forcing the estate to
sell its properties. Such forced sales would frustrate the
purpose of section 6166, which is to avoid forced sales or other
actions that might jeopardize the continued operation of a
closely held business.
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Last modified: November 10, 2007