- 13 -
In August, 1988 we were first notified of a proposed
disallowance of Blue Gem. We are requesting an
abatement of interest from December, 1988 to present
for the following reasons:
Our 1988 Appeal from the proposed disallowance was
taken to the Tax Court and it took eight years for the
overburdened court, after putting it on the docket, to
issue a 1996 decision.[7]
The decision was issued in favor of the government’s
position since the TMP of Blue Gem was uncooperative.
In that ensuing eight year period we heard nothing from
the Internal Revenue Service and had no idea of this
inordinate length it would take to reach a decision.
Had we known, we surely would have deposited the tax
liability in 1988 to stop the running of interest.
We are in dispute as to the timely assessment of
interest due to the inordinate delay of eight years and
we respectfully request an abatement from December 31,
1988. We have no way of calculating the interest due
to December 31, 1988 and have therefore left Item 2
[i.e., the amount of interest to be abated] blank.
Surely the Internal Revenue Service should not penalize
a taxpayer for an eight year Tax Court delay in
rendering a decision. It would seem that this case
would fall under the term “Ministerial Act”.
* * * * * * *
Had we not appealed the IRS decision we would have paid
the tax and interest to December 31, 1988. Because we
appealed we are being penalized for an eight year delay
7Contrary to petitioners’ explanation, neither the TMP nor
any notice partner filed a petition in this Court for
redetermination of the partnership adjustments proposed in the
FPAA’s issued with respect to Blue Gem. In fact, the Blue Gem
case was “defaulted” administratively because a timely judicial
proceeding was not filed in any court following the mailing of
the FPAA’s. We also note that petitioners’ claim that they
“heard nothing from the Internal Revenue Service” during an 8-
year period was not accurate, as our findings of fact reflect.
Page: Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 NextLast modified: May 25, 2011