- 8 -8
liable for income tax deficiencies for 1982 and 1979,
respectively. Petitioners contend that the period from 1979, the
earlier year in issue, to 1995, when respondent issued the
notices of deficiency, was simply too long. As to the FPAA sent
on June 4, 1990, petitioners also contend that respondent’s
employees had a ministerial duty to send an FPAA in the Encoder
case to Signature, and that respondent cannot prove that
respondent mailed it to the correct address.
We disagree because petitioners’ arguments relate to the
time before May 30, 1995. The Commissioner may not abate
interest that accrues before the Commissioner first contacts the
taxpayer in writing with respect to the deficiency or payment of
tax. Sec. 6404(e) (flush language); Krugman v. Commissioner,
supra at 239. Respondent first contacted petitioners in writing
about the additions to tax for 1979 and 1982 in the notices of
deficiency for those years, sent on May 30 and June 5, 1995.
Thus, respondent’s refusal to abate interest before those dates
was not an abuse of discretion. See sec. 6404(e) (flush
language); Krugman v. Commissioner, supra.
In addition, based on the detailed testimony of respondent’s
lead project attorney for the EMS litigation, we find that none
of the delays before September 30, 1995, resulted from errors by
respondent's employees in performing a ministerial act.
Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011