- 9 - under section 104 cannot be attacked using section 6404(e) because that decision was made before respondent contacted petitioner in writing concerning the deficiency for the first time, see sec. 6404(e), and involved the proper application of Federal tax law, see sec. 301.6404-2T(b)(1), Temporary Proced. & Admin. Regs., supra. Any delay occurring after petitioners received the examination report and prior to the payment of the tax deficiency was due to petitioners’ understandable desire to consult with their tax adviser regarding an appropriate response to the report. Petitioners’ complaint is really one against fate-–they filed their return just before the Supreme Court provided definitive guidance on the correct tax treatment to be accorded damages like those awarded here. Section 6404(e) simply does not reach this type of complaint. Since there was no erroneous or dilatory performance of a ministerial act, respondent lacked authority to abate interest, and, therefore, his refusal to abate interest in this case cannot be an abuse of discretion under section 6404(e). Accordingly, we must sustain respondent’s determination. To reflect the foregoing, Decision will be entered for respondent.Page: Previous 1 2 3 4 5 6 7 8 9
Last modified: May 25, 2011