James K. Gaudet - Page 6




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          The Report of the Senate Finance Committee accompanying the Tax             
          Reform Act of 1986, Pub. L. 99-514, 100 Stat. 2085, states:                 
               The committee does not intend that this provision be used              
               routinely to avoid payment of interest; rather, it intends             
               that the provision be utilized in instances where failure to           
               abate interest would be widely perceived as grossly unfair.            
               The interest abatement only applies to the period of time              
               attributable to the failure to perform the ministerial act.            
                  *       *       *       *       *       *       *                   
                    The committee intends that the term “ministerial act”             
               be limited to nondiscretionary acts where all of the                   
               preliminary prerequisites, such as conferencing and review             
               by supervisors, have taken place.  Thus, a ministerial act             
               is a procedural action, not a decision in a substantive area           
               of tax law.  For example, a delay in the issuance of a                 
               statutory notice of deficiency after the IRS and the                   
               taxpayer have completed efforts to resolve the matter could            
               be grounds for abatement of interest.  The IRS may define a            
               ministerial act in regulations.  [S. Rept. 99-313, at 208-             
               209 (1986), 1986-3 C.B. (Vol. 3) 1, 208-209.]                          
          The regulations provide:                                                    
               The term “ministerial act” means a procedural or mechanical            
               act that does not involve the exercise of judgment or                  
               discretion, and that occurs during the processing of a                 
               taxpayer's case after all prerequisites to the act, such as            
               conferences and review by supervisors, have taken place.  A            
               decision concerning the proper application of federal tax              
               law (or other federal or state law) is not a ministerial               
               act.  [Sec. 301.6404-2T(b)(1), Temporary Proced. & Admin.              
               Regs., 52 Fed. Reg. 30163 (Aug. 13, 1987).]                            
               While petitioner's original application for abatement                  
          encompasses the deficiency and all the interest due for the 1996            
          taxable year, his subsequent request relates only to interest,              
          and at the hearing, petitioner narrowed the scope of his request            
          for abatement to the period between July 1998 (when he alleges              
          that he orally requested that the file be sent from the Internal            





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