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files a return and the date the Commissioner commences an audit
is not permitted under section 6404(e). Sims v. Commissioner,
T.C. Memo. 1999-414 (quoting H. Rept. 99-426, at 844 (1986),
1986-3 C.B. (Vol. 2) 1, 844).
Temporary regulations interpreting section 6404(e) define
the term “ministerial act” as “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.” Sec. 301.6404-2T(b)(1),
Temporary Proced. & Admin. Regs., 52 Fed. Reg. 30163 (Aug. 13,
1987). A decision concerning the proper application of law,
either Federal or State, is not a ministerial act. Id. Final
regulations under section 6404, issued in 1998 and generally
applicable to interest accruing on deficiencies or payments of
tax for taxable years beginning after July 30, 1996, provide the
same definition of ministerial act. Sec. 301.6404-2(b)(2),
Proced. & Admin. Regs.
A managerial act is defined in the final regulations as “an
administrative act that occurs during the processing of a
taxpayer’s case involving the temporary or permanent loss of
records or the exercise of judgment or discretion relating to
management of personnel.” Sec. 301.6404-2(b)(1), Proced. &
Admin. Regs. A general administrative decision, such as the
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