Frank J. Gorgie and Rosalia Gorgie - Page 9




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          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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