- 13 -
which referenced just the taxable years 1994 and 1995, the
director of respondent’s Atlanta Service Center advised
petitioner of respondent’s intention not to abate interest on the
deficiencies in income taxes for those 2 years because “There
were no delays or errors relating to the performance of [a]
ministerial act”. The letter also stated, in part, as follows:
Under Internal Revenue Code Section 6404(e)(1),
interest may only be abated on errors or delays that
occur after the date the Internal Revenue Service
contacts the taxpayer in writing with respect to the
deficiency or payment. The amount accrued prior to
this date cannot be abated regardless of the period
that may have elapsed since the taxpayer’s return was
filed. Your requests for abatement of interest were
based on acts that happened prior to the Internal
Revenue Service’s contacts with you in respect to the
deficiencies of 1994 and 1995 tax years.
Filing your 1988 through 1995 tax returns without
an audit being performed to alert you that the “gift
giving” deduction should not be allowed happened prior
to the Internal Revenue Service’s contacts with you in
regards to the deficiencies. Therefore, this time
period does not qualify for abatement of interest under
Internal Revenue Code Section 6404(e)(1).
There were also no erroneous refunds, which were
issued to you due to errors or oversights by the
Internal Revenue Service. Under Internal Revenue Code
Section 6404(e)(2), interest may be abated with respect
to a erroneous refund check. The Secretary shall abate
the assessment of all interest on any erroneous refund
until the date demand for repayment is made, unless (1)
the taxpayer (or related party) has in any way caused
such erroneous refund or (2) such erroneous refund
exceeds $50,000.
In reviewing your claim for abatement of interest
under the “erroneous refund” provisions, it has been
determined that all refunds issued to you were based on
the original filing of your individual Form 1040 for
each tax year. Your contention that the Tax Examiners
should have noticed and not allowed the tax free gift-
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