William M. Donovan - Page 8




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          were not ministerial acts within the meaning of section 6404(e).            
          See Taylor v. Commissioner, 113 T.C. 206 (1999); Lee v.                     
          Commissioner, supra.                                                        
               Furthermore, section 6404(e) applies “only if no significant           
          aspect of such error or delay can be attributed to the taxpayer             
          involved.”  As we view the matter, petitioner’s conduct, more so            
          than respondent’s, resulted in the length of time that the                  
          deficiency cases were pending before this Court.  Petitioner                
          could have settled the deficiency cases within 1 year after the             
          second case was filed.  Instead, he waited approximately 7 years            
          to do so.  Mr. Taylor (petitioner’s attorney in the deficiency              
          cases) testified that at the time he did not understand                     
          respondent’s settlement offer and the delay in accepting it was             
          due to respondent’s failure, or refusal, to explain it to him.              
          Mr. Taylor’s explanation for the delay is less than compelling              
          considering his testimony long after the fact that, in his                  
          opinion, petitioner should not have accepted respondent’s offer             
          because of the weaknesses in respondent’s positions in the                  
          deficiency cases.  Nevertheless, even if respondent had some                
          obligation to explain the settlement proposal to petitioner’s               
          attorney in the deficiency cases, an obligation assumed by                  
          petitioner but unsupported by any authority, and even if                    
          respondent failed to do so, respondent’s failure does not                   
          constitute a ministerial act.                                               






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