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determining not to exercise his discretion to allow an election
under section 6166. The estate also alleges that respondent
erred by requiring the estate to provide a bond or a special lien
in order to qualify for the election. The estate argues that
such a requirement was without basis in law, was arbitrary and
capricious, and constituted an abuse of discretion.
Respondent moved for summary judgment, arguing that section
7479 does not give this Court jurisdiction to review respondent’s
denial of the section 6166 election because of the estate’s
failure to fulfill respondent’s prerequisite of a bond or a
special lien under section 6324A. The estate objected to
respondent’s motion and filed a cross-motion for summary judgment
arguing that: (1) Respondent’s refusal to exercise his
discretion by requiring a bond in every case is an abuse of
discretion; and (2) the undisputed facts establish that if
respondent had properly exercised his discretion, no bond or
special lien should have been required.
Discussion
I. Background of the Relevant Statutes
A. Installment Payment Election
In general, Federal estate tax is due within 9 months of a
decedent’s death. Sec. 6075(a). Under section 6166(a)(1), a
qualifying estate may elect to pay the estate tax in installments
over an extended period. Section 6166(a) provides:
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Last modified: November 10, 2007