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an abuse of discretion. Sec. 6404(i). The taxpayer must
demonstrate that the Commissioner, in failing to abate interest,
exercised his discretion arbitrarily, capriciously, or without
sound basis in law or fact. Woodral v. Commissioner, 112 T.C.
19, 23 (1999).
Petitioner requests abatement of interest pursuant to
section 6404(e)(1). Section 6404(e)(1), as applicable to
petitioner’s 1992 and 1993 tax years,2 reads as follows:
SEC. 6404(e). Assessments of Interest
Attributable to Errors and Delays by Internal Revenue
Service.--
(1) In general. – In the case of any
assessment of interest on–
(A) any deficiency attributable in
whole or in part to any error or delay
by an officer or employee of the
Internal Revenue Service (acting in his
official capacity) in performing a
ministerial act, or
(B) any payment of any tax
described in section 6212(a) to the
extent that any error or delay in such
payment is attributable to such
officer or employee being erroneous or
dilatory in performing a ministerial act,
the Secretary may abate the assessment of all
or any part of such interest for any period.
2 Congress amended sec. 6404(e) in 1996 to permit abatement
of interest for “unreasonable” error or delay in performing a
“ministerial or managerial” act. Taxpayer Bill of Rights 2 (TBOR
2), Pub. L. 104-168, sec. 301(a)(1) and (2), 110 Stat. 1452, 1457
(1996). That standard, however, applies to tax years beginning
after July 30, 1996. TBOR 2 sec. 301(c), 110 Stat. 1457.
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Last modified: May 25, 2011