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petitioner was informed that, to pursue the matter further, she
had to pay the balance due and submit a claim for refund on Form
843, Claim for Refund and Request for Abatement. On or about
May 16, 1994, petitioner submitted a check to respondent for
$21,706.47, paying the full amount of tax, penalty, and interest
owing on the unpaid employment tax liabilities.
On May 15, 1996, petitioner submitted eight separate Forms
843 seeking abatement of interest assessed on the employment tax
liabilities. On November 12, 1998, respondent mailed to
petitioner a final determination denying petitioner’s claim for
interest abatement. Petitioner filed a petition to contest
respondent’s determination not to abate interest under section
6404(e)(1) for the taxable years in issue, claiming that
respondent’s denial was an abuse of discretion.
Discussion
Respondent argues that there was no abuse of discretion
under section 6404(e) because respondent is not authorized under
section 6404(e)(1) to abate interest assessed with respect to
employment taxes. Respondent relies on our holding in Woodral v.
Commissioner, 112 T.C. 19 (1999). Petitioner argues that Woodral
was incorrectly decided, that respondent has the authority to
abate interest on employment taxes, and that respondent’s failure
to abate the interest in this case under section 6404(e)(1) was
an abuse of discretion.
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