- 9 -
1987).3 A decision concerning the proper application of Federal
tax law is not a ministerial act. See id.
Petitioners argue, notwithstanding the settlement they
entered into admitting a tax liability due and owing, as well as
agreeing to the imposition of a negligence penalty, that the
audit was "foisted" upon them by an "inexperienced, naive, and
zealous agent who pulled out all the stops" in an attempt to
develop a fraud case against them. Petitioners also maintain
that, in any case, the audit should have been completed within a
couple of weeks despite the fact that Agent Mazon had been
required to examine three tax years and had been required to
analyze petitioners' numerous bank account records. Petitioners'
arguments are without merit.
Respondent had difficulty obtaining from petitioner certain
bank records, and petitioners, or their representative, canceled
or postponed at least two meetings with Agent Mazon.
Nonetheless, any delay caused by petitioners in the instant case
is secondary to our more fundamental conclusion that respondent's
3 The final regulation under sec. 6404, sec. 301.6404-2,
Proced. & Admin. Regs., was issued on Dec. 18, 1998. See T.D.
8789, 63 Fed. Reg. 70012 (Dec. 18, 1998). The final regulation
generally applies to interest accruing on deficiencies or
payments of tax described in sec. 6212(a) for tax years beginning
after July 30, 1996. See sec. 301.6404-2(d)(1), Proced. & Admin.
Regs. Thus, the final regulation is inapplicable to the instant
case, and sec. 301.6404-2T, Temporary Proced. & Admin. Regs., 52
Fed. Reg. 30163 (Aug. 13, 1987), effective for taxable years
beginning after Dec. 31, 1978, but before July 30, 1996, does
apply. See sec. 301.6404-2T(c), Temporary Proced. & Admin.
Regs., supra.
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