Estate of Edward P. Roski, Sr., Deceased, Edward P. Roski, Jr., Executor - Page 11

                                       - 11 -                                         
               C.   Judicial Review                                                   
               Before the enactment of section 7479 in the Taxpayer Relief            
          Act of 1997, Pub. L. 105-34, sec. 505(a), 111 Stat. 854,                    
          generally the only recourse estates had in a dispute over a                 
          section 6166 election was to pay the tax first and seek a refund.           
          See, e.g., Estate of Meyer v. Commissioner, 84 T.C. 560, 562                
          (1985); cf. Snyder v. United States, 630 F. Supp. 182 (D. Md.               
          1986).  However, Congress realized that this limited recourse               
          would often defeat the purpose of the relief section 6166                   
          provided, which was to allow estates whose assets were mainly               
          composed of small businesses to defer payment of tax so they                
          could avoid having to liquidate their small businesses to fulfill           
          their obligation to pay the tax within 9 months.  See H. Rept.              
          105-148, at 358 (1997), 1997-4 C.B. (Vol. 1) 319, 680.  Section             
          7479(a) provides:                                                           
                         SEC. 7479(a).  Creation of Remedy.--In a                     
                    case of actual controversy involving a                            
                    determination by the Secretary of (or a                           
                    failure by the Secretary to make a                                
                    determination with respect to)--                                  
                              (1) whether an election may be                          
                         made under section 6166 (relating                            
                         to extension of time for payment of                          
                         estate tax where estate consists                             
                         largely of interest in closely held                          
                         business) with respect to an estate                          
                         (or with respect to any property                             
                         included therein), or                                        
                              (2) whether the extension of                            
                         time for payment of tax provided in                          
                         section 6166(a) has ceased to apply                          

Page:  Previous  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  Next 

Last modified: November 10, 2007