- 8 -
failing to abate interest. See sec. 6404(g); Krugman v.
Commissioner, supra at 239.
Section 6404(e)(1)(B) provides, in pertinent part, that the
Commissioner may abate the assessment of interest on any payment
of tax if an error or delay by the taxpayer in paying his or her
tax is attributable to an officer or employee of the IRS being
erroneous or dilatory in performing a ministerial act.7 For
purposes of section 6404(e)(1), an error or delay is taken into
account only (1) if no significant aspect of such error or delay
can be attributed to the taxpayer, and (2) after the IRS has
contacted the taxpayer in writing with respect to such deficiency
or payment. See sec. 6404(e)(1). Congress intended the
Secretary to abate interest "where failure to abate interest
would be widely perceived as grossly unfair." H. Rept. 99-426
(1985), 1986-3 C.B. (Vol. 2) 844; S. Rept. 99-313 (1985), 1986-3
C.B. (Vol. 3) 208. However, Congress did not intend that
abatement "be used routinely to avoid payment of interest." Id.
7 In 1996, sec. 6404(e) was amended under sec. 301 of the
Taxpayer Bill of Rights 2, Pub. L. 104-168, 110 Stat. 1452, 1457
(1996), to permit the Secretary to abate interest with respect to
an unreasonable error or delay resulting from managerial and
ministerial acts. This amendment, however, applies to interest
accruing with respect to deficiencies or payments for tax years
beginning after July 30, 1996. This case involves petitioner's
1988 tax year. Therefore, the amendment is inapplicable to the
case at bar. See Woodral v. Commissioner, 112 T.C. 19, 25 n.8
(1999).
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