- 11 -
and reviewed petitioners’ file and invited petitioners to a
conference. Keenan sent a written settlement offer to
petitioners on March 2, 1995. We are convinced by Keenan’s
testimony that there was no delay due to a ministerial error from
October 21, 1994, to March 2, 1995.
Petitioners accepted Keenan's offer and signed the Form 870,
Waiver of Restrictions on Assessment and Collection of Deficiency
in Tax and Acceptance of Overassessment, to settle their case on
April 17, 1996. Keenan's supervisor approved the settlement on
May 31, 1996. Respondent abated the assessment consistent with
the settlement on September 30, 1996.
We conclude that respondent’s failure to abate interest from
August 18, 1994, to September 30, 1996, was not an abuse of
discretion.
7. October 1, 1996, to Present
It was not an abuse of discretion for respondent not to
abate interest that accrued after September 30, 1996, because
that interest accrued solely due to petitioners’ failure to pay
the liability to which they had agreed.
Petitioners contend essentially that interest that accrued
after September 30, 1996, should be abated because respondent
should have used the refund paid to petitioners on February 21,
1994, to offset petitioners' 1990 tax deficiency. We disagree.
Petitioner could have used those amounts to pay tax deficiencies
for 1990. Respondent was under no obligation to use petitioners'
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011