William M. Donovan - Page 9




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               We have considered all of petitioner’s complaints regarding            
          respondent’s conduct in connection with the deficiency cases,               
          including the claim made in petitioner’s brief that the 1981                
          deficiency was erroneously overstated in the stipulated decision            
          entered in the case involving that year, and find that none                 
          supports a ground for relief under section 6404(e).  Respondent’s           
          conduct in connection with the deficiency cases provides no basis           
          to conclude that respondent’s failure to abate interest was an              
          abuse of discretion.                                                        
          Petitioner paid the deficiencies on various dates between                   
          September 19 and November 28, 1994.  None of the interest has               
          been paid.  As of the date that each of the deficiencies was                
          paid, interest ceased to run on the underlying tax.  However,               
          because no interest was paid, and because interest that accrued             
          after December 31, 1982, is compounded daily, interest continued            
          to accrue (and continues to accrue) after the dates that the                
          deficiencies were paid.  Interest accruing after the dates that             
          the deficiencies were paid is due to petitioner’s failure to pay            
          the outstanding interest obligations and not due to a ministerial           
          act on respondent’s part.  See Douponce v. Commissioner, T.C.               
          Memo. 1999-398.  Respondent’s failure to abate interest for any             
          period after the dates that the deficiencies were paid was not an           
          abuse of discretion.                                                        








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