James K. Gaudet - Page 8




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               Furthermore, even if the amended section 6404(e) were                  
          applicable, we seriously doubt whether under these circumstances            
          there was an “unreasonable error” in not sending the file to New            
          Orleans.  The initial CP-2000 letter was issued from the Internal           
          Revenue Service Center in Chamblee, Georgia, and we would not               
          find that, by not sending petitioner’s file to New Orleans,                 
          respondent unreasonably erred in performing a ministerial or                
          managerial act.  Petitioner has failed to demonstrate how or why            
          that inaction would be unreasonable.                                        
               Finally, it should be noted that we are by no means                    
          convinced that any delay, to which the accrued interest would be            
          attributable, was due to respondent’s action.  Petitioner knew              
          his wife had assets inherited from her parents, but, when                   
          preparing the tax return, he never bothered to determine what               
          income she had received from those assets.  After the initial CP-           
          2000 letter from respondent, petitioner knew precisely what Legg            
          Mason had reported to respondent.  Petitioner testified initially           
          that he knew he owed the tax in September 1998, and later he                
          changed his testimony.  His second version was that he did not              
          know until the file was sent to New Orleans in April or May of              
          2000.  But he had contacted Legg Mason in August 1998.  His later           
          explanation that he did not know what information respondent had            
          before the file was sent to New Orleans has a decidedly hollow              
          ring.  Realistically, the accrued interest was due to                       






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