Scott William Katz - Page 20




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               Our jurisdiction to redetermine assessments of interest                
          pursuant to section 6601 is limited.  Section 7481(c) provides              
          that if within 1 year after a decision becomes final, the                   
          taxpayer files a petition to redetermine interest, the Tax Court            
          has overpayment jurisdiction with regard to the interest.17                 
          Further, section 6404(i) provides the Tax Court with jurisdiction           
          to review the Commissioner’s refusal to abate interest under                
          section 6404.                                                               
               In his request for an Appeals hearing, petitioner contended            
          that interest should not have accrued during his bankruptcy case.           
          Because we view petitioner’s request as a request for an                    
          abatement of interest, we hold that we have jurisdiction to                 
          review the Appeals officer’s determination with regard to the               
          interest that is the subject of respondent’s collection                     
          activities.                                                                 
               Under preamendment section 6404(e),18 the Commissioner “may            
          abate the assessment of interest on any payment of tax to the               



               17  Sec. 7481(c)(2)(A)(ii), however, requires that the                 
          taxpayer have “paid the entire amount of the deficiency plus                
          interest” for the Tax Court to have overpayment jurisdiction with           
          regard to the interest.                                                     
               18  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; 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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