William Grant Lee - Page 8




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               an unreasonable delay in the issuance of a statutory                   
               notice of deficiency after the IRS and the taxpayer                    
               have completed efforts to resolve the matter would be                  
               grounds for abatement of interest.  [H. Rept. 99-426,                  
               supra at 845, 1986-3 C.B. (Vol. 2) at 845.]                            
          The Senate report states:                                                   
               a delay in the issuance of a statutory notice of                       
               deficiency after the IRS and the taxpayer have                         
               completed efforts to resolve the matter could be                       
               grounds for abatement of interest.  * * *  [S. Rept.                   
               99-313, supra at 209, 1986-3 C.B. (Vol. 3) at 209.]                    
               Temporary regulations issued by the Secretary provide a                
          definition for "ministerial act" and provide numerous examples of           
          what is or is not an error or delay in performing a ministerial             
          act.  See sec. 301.6404-2T, Temporary Proced. & Admin. Regs., 52            
          Fed. Reg. 30163 (Aug. 13, 1987).  Section 301.6404-2T(b)(1),                
          Temporary Proced. & Admin. Regs., supra, states:                            
               The term "ministerial act" means a procedural or                       
               mechanical act that does not involve the exercise of                   
               judgment or discretion, and that occurs during the                     
               processing of a taxpayer's case after all prerequisites                
               to the act, such as conferences and review by                          
               supervisors, have taken place.  A decision concerning                  
               the proper application of federal tax law (or other                    
               federal or state law) is not a ministerial act.                        
          Petitioner's Arguments                                                      
               Petitioner argues that some or all of the interest4 on his             
          1980 tax liability should be abated pursuant to section 6404(e).            


               4  Petitioner, however, conceded in his trial memorandum and           
          at trial that he was responsible for interest accruing before               
          1986.  We, therefore, address only whether petitioner is entitled           
          to an abatement of interest as of Jan. 1, 1986.                             






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