Free Motion for Leave to File - District Court of Federal Claims - federal

Case 1:05-cv-01028-MBH

Document 40-2

Filed 08/24/2006

Page 1 of 6

IN THE UNITED STATES COURT OF FEDERA CLAIMS
ESTATE OF RANKIN M. SMITH, SR., SUNTRUST BANK, TAYLOR W. SMITH and RANKIN M. SMITH, JR.,

Co-Executors,

Plaintiff,
v.
THE UNITED STATES OF AMERICA
Case No. 05-1028T

Defendant.
DECLATION OF TONI A. McDONALD
I, Toni A. McDonald, am employed as a Supervisory Paralegal

Specialist by the Internal Revenue Service in the Specialty
Programs for Estate and Gift in the Small Business/Self-Employed

Operating Division located in the Cincinnati Service Center, and
I state as follows:

1. In my official capacity, as a Supervisory Paralegal
Specialist in the Specialty Programs for Estate and Gift, I have

access to the Internal Revenue Service's records concerning the account of, and outstanding estate tax liabilities of, the

Estate of Rankin M. Smith, Sr. (Estate). In this regard, I have
examined the Internal Revenue Service's records for this
account, including, the Certificate of Assessments, Payments,

and Other Specified Matters (a copy of which is attached hereto
as Exhibit 1), and other records in the administrative file with
respect to the matters at issue in this case.
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Case No. 05-1028T

2. On the Estate's United States Estate (and GenerationSkipping Transfer) Tax Return (Form 706) received by the
Internal Revenue Service on February 1, 1999, the Estate made an

election under I. R. C. § 6166 to defer payment of the entire
estate tax liability. In this case, the Estate elected to make
a total of fourteen annual installment payments beginning on
July 26, 1999, and ending on July 26, 2012.
The first four

annual payments were to be for interest only and the remaining
ten annual payments were to be in the amount of $975,076.54J

plus interest.
3. On July 1, 2002, the Internal Revenue Service assessed
restricted interest of $388,153.22. This amount represented a
portion of the fourth year installment payment computed pursuant

to the Estate's election to defer payment of the estate tax
liability under I.R.C. § 6166.

4. On June 20, 2002, an assessment was made for
additional estate tax due from the Estate in the amount of
$13,644,400.00, pursuant to the default of the statutory notice
of deficiency that was issued to the Estate on January 25, 2002.

5. As a result of the additional estate tax assessment of
$13,644,400.00, that was assessed on June 20, 2002, the Certificate of Assessments and Payments for the Estate reflects

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Case No. 05-1028T

an outstanding estate tax due of $4,276.648.61. This amount
does not include any accrued or assessed interest.
I declare under penal ties of perj ury pursuant to 28 U. S. C.

i 1746 that the foregoing is true and correct.

EXECUTED in Cincinnati, Ohio, this /O~day of August ~006.

~. a. 77~

TONI A. McDonald Supervisory Paralegal Specialist

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IN THE UNTED STATES COURT OF FEDERL CLAIS
No.05-1028 T

(Judge Marian Blan Horn)

ESTATE OF RA M. SMmI, SR.,
SUNRUST BAN, TAYLOR W. SMITH~ and

RA M. SMITH, JR., Co-Exectors,
Plaintiffs
v.

THE UNTED STATES,

Defendat

DECLATION OF DARENE BROOMALL

i, Darlene Broomall, am emloyed as a Senior Disclosure Spec.:ialist for the Intem

Revenue Serice ("IRS") at the Covigton Campus in Covingtn, Kentucky (the IR now uses
the term "Campus" to refer to what were previously called "Service Centers"). I have worked in
the Disclosur Offce at the lR for 11 ye, and I ste as follows:

1. In my offcial capacity, as a Senior Disclosur Speialist, I have acces to the IR
recrds regaring the suar rerds of assements made on a given business day. AIthøugh

my offce is located in Kentucky, it is in charge of the acounting fuction for the Memphis
Campus and the Covington Campus handles the acounting recrd frm the Memphis Canpu.

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2. The sum recrd of assessment tht is curntly used by the IRS in most cases is
the Racs Report- 006. "Racs" stands for Revenue Accunting Contrl Sysem. A sumar
record of assessment is signed by the assessing offcer on the date of assessment. The Racs
Repor -006 is computer generated and is a compilation of the tota amount of

ta, penaltieS and

interest asesed for a particular day, withut referce to any spific tapaye. Dung the
nonnal coure, a taxpayer may have assessments made by a varety of differt ms Campuses
depending upon for example the aut, appeas and/or collection locations that may be involved

with makng an assessment on an account.

3. At the request ofthe IRS attorney asigned to this matter, I obtaied the S~mmary
Record of Assessment, Racs Reprt -006 for June 20, 2002, for the Memphis Campus.

4. I cerifY that attahed heret as Exhibit A is a tre and correct coy of the Summ
Recrd of Assssent, Racs Report- 00, made at the Memphis Campus for the asessi!ent date

of June 20, 2002. The attahed Sumar Record of Asessment, Racs Reprt -00, reflects the

lol.l amount of taes. inteest, and pealties, assessed on June 20, 2002, at the Memhis

Campus of the IRS, without referene to any spific taayer. The Sumar Record of
Assessment, Racs Report -006, attached herto, reflects total curnt assessmens. deficiency
asesments, and

jeopardy assel!sments made at the Memphis Campus on June 20, 2002. In th

atthed Summa Record of Assessment, Racs Reprt-0, the "assment !)" is desribe

as "quick." Listed under the catery of "Deficieny Assesments" in the attached Sumar
Recrd of Assessments, Racs Reprt- 006, and set forth under the category of "Estate & Gift" is

an assesment of $ i 3,64,400, whÍch was mae on June 20. 2002. The Sumar Record of
Assesmet, Raes Report - 00, atthed hero, was signed by the asseg offcer on June 20,
2002, the date of the assessment.

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5. Although the Sumar Recrd of Assessment, Ras Reprt -006, does not, on

its

face, identify a parcular taxpayer's assesment, the acount trscpt does provide ths
information. I have reviewed the account trascript for the Estate of

Ranin M. Smith, which is

atthed to the Sumar Record of Assessment, Racs Report -00, and it reflects a $13,64,400
assesment made on June 20, 2002. The attached Surnar Record of Assessment, Racs Report

-00, reflects this $13,644,400 assessment.
I declare under penalty of peur that the forgoing is tre and correct to the best of my

knowledge and belief.

Executed in Covington, Kentucky ths is day of August 200.

Æ~ &ôiad
DARENE BROOMALL

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