William M. Donovan - Page 5




                                        - 5 -                                         
          mechanical act that does not involve the exercise of judgment.              
          See Lee v. Commissioner, 113 T.C. 145 (1999); sec. 301.6404-2T,             
          Temporary Proced. & Admin. Regs., 52 Fed. Reg. 30163 (Aug. 13,              
          1987).  Subject to various procedural and other requirements set            
          forth in the statute and not here in dispute, the Court has                 
          jurisdiction over any action brought by a taxpayer to determine             
          whether the Commissioner’s failure to abate interest was an abuse           
          of discretion.  See sec. 6404(g).                                           
               As a preliminary point, we note that interest is defined as            
          “compensation for the use or forbearance of money”.  Deputy v.              
          Dupont, 308 U.S. 488, 498 (1940).  “Use or forbearance” connotes            
          the passage of time.  Consistent with the definition of interest,           
          section 6404(e) requires not only the identification of an error            
          or delay caused by a ministerial act on the Commissioner’s part,            
          but the identification of a specific period of time over which              
          interest should be abated as a result of the error or delay.                
          See, e.g., Krugman v. Commissioner, 112 T.C. 230 (1999); Douponce           
          v. Commissioner, T.C. Memo. 1999-398.                                       
               The expected correlation between the error or delay                    
          attributable to a ministerial act on respondent’s part and a                
          specific period of time is, for the most part, missing in these             

          3(...continued)                                                             
          ministerial acts.  The amendment is effective for interest                  
          accruing with respect to deficiencies or payments for tax years             
          beginning after July 30, 1996, and is therefore inapplicable                
          here.                                                                       





Page:  Previous  1  2  3  4  5  6  7  8  9  10  Next

Last modified: May 25, 2011