- 15 -
Congress intended for the Commissioner to abate interest under
section 6404(e) "where failure to abate interest would be widely
perceived as grossly unfair" but not that it "be used routinely
to avoid payment of interest". H. Rept. 99-426, at 844 (1985),
1986-3 C.B. (Vol. 2) 1, 844; S. Rept. 99-313, at 208 (1986),
1986-3 C.B. (Vol. 3) 1, 208.
3. Jurisdiction of the Tax Court
We have jurisdiction to decide whether respondent's failure
to abate interest under section 6404(e)(1)(B) is an abuse of
discretion because (a) petitioner made a claim under section
6404(e) to abate interest on unpaid tax, (b) after July 30,
1996,8 respondent issued a final determination which disallowed a
part of petitioner's claim to abate interest, and (c) petitioner
7(...continued)
the preceding sentence, an error or delay shall be
taken into account only if no significant aspect of
such error or delay can be attributed to the taxpayer
involved, and after the Internal Revenue Service has
contacted the taxpayer in writing with respect to such
deficiency or payment.
Congress amended sec. 6404(e) in 1996 to permit abatement of
interest for "unreasonable" error and delay in performing a
"ministerial or managerial" act. Taxpayer Bill of Rights 2 (TBOR
2), Pub. L. 104-168, sec. 301(a)(1) and (2), 110 Stat. 1452, 1457
(1996). However, that standard first applies to tax years
beginning after July 30, 1996. TBOR 2 sec. 301(c), 110 Stat.
1457.
8 The Tax Court has jurisdiction under sec. 6404(g) if the
taxpayer asks the Commissioner to abate interest before July 30,
1996, and the Commissioner denies the request after that date.
Banat v. Commissioner, 109 T.C. 92, 94-95 (1997).
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