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that the case had settled. On March 26, 1997, the Court entered
a stipulated decision in docket No. 16805-95. In it, the parties
agreed that petitioners were liable for additions to tax under
section 6659 of $401 for 1979 and $1,175 for 1982. Petitioners
paid the assessments of those additions to tax and the taxes
assessed as computational adjustments but did not pay the
interest because they believe the process had been unfair.
On July 25, 1997, respondent issued a final determination
denying petitioners’ interest abatement claim.
OPINION
A. Abatement of Interest
1. The Commissioner's Authority To Abate Interest
Under section 6404(e)(1), the Commissioner may abate part or
all of an assessment of interest on any deficiency or payment of
tax if (a) either (1) the deficiency was attributable to an error
or delay by a Service official in performing a ministerial act,
or (2) an error or delay by the taxpayer in paying his or her tax
is attributable to a Service official being erroneous or dilatory
in performing a ministerial act; and (b) the taxpayer caused no
significant aspect of the delay. Interest is abatable only after
the Commissioner has contacted the taxpayer in writing about the
deficiency or payment in question. See sec. 6404(e) (flush
language). We apply an abuse of discretion standard in reviewing
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