Harry R. Gross - Page 8




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          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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