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E. Payment of Petitioners’ Tax Liability
By letter dated August 18, 1997, petitioners informed
respondent that they had obtained a loan to satisfy their
outstanding tax liability for 1993. Shortly thereafter, on
August 27, 1997, petitioners paid their liability in full.
F. Notice of Determination and Commencement of Litigation
By notice of determination dated May 9, 2000, respondent
disallowed, in full, petitioners’ request for abatement of
interest9 on the ground that “We found no ministerial errors or
delays on the part of the Internal Revenue Service that warrant
abatement of interest in your case.”
On November 6, 2000, petitioners commenced an action in this
Court by filing a petition, pursuant to section 6404(i) and Rules
280-284, for review of respondent’s failure to abate interest
with respect to the taxable years 1993.10
OPINION
In general, interest on an underpayment of income tax begins
9 The evidentiary record does not include a copy of
petitioners’ request for abatement.
10 In pertinent part, sec. 6404(i) provides that “The Tax
Court shall have jurisdiction over any action brought by a
taxpayer who meets the requirements referred to in sec.
7430(c)(4)(A)(ii) to determine whether the Secretary’s failure to
abate interest under this section was an abuse of discretion, and
may order an abatement, if such action is brought within 180 days
after the date of the mailing of the Secretary’s final
determination not to abate such interest.” Petitioners meet the
net worth requirements of sec. 7430(c)(4)(A)(ii), and their
action was timely commenced. See sec. 7502(a).
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