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OPINION
In general, interest on a deficiency in income tax begins to
accrue on the due date of the return for such tax and continues
to accrue, compounding daily, until payment is made. See secs.
6001(a), 6622(a).
This Court may order an abatement of interest only if there
is an abuse of discretion by the Commissioner in failing to abate
interest. Sec. 6404(i), formerly 6404(g). In order to
demonstrate an abuse of discretion, a taxpayer must prove that
the Commissioner exercised his discretion arbitrarily,
capriciously, or without sound basis in fact or law. See Rule
142(a); Lee v. Commissioner, 113 T.C. 145, 149 (1999); Woodral v.
Commissioner, 112 T.C. 19, 23 (1999).
The Commissioner has the authority to abate, in whole or in
part, an assessment of interest on a deficiency if the accrual of
such interest is attributable to an error or delay by an officer
or employee of the Internal Revenue Service (IRS), acting in his
or her official capacity, in performing a ministerial act. See
sec. 6404(e)(1).9 An error or delay by the Commissioner can be
taken into account only: (1) If it occurs after the Commissioner
9 Sec. 6404(e) was amended in 1996 by TBOR 2 sec. 301, 110
Stat. 1457, to permit the Commissioner to abate interest with
respect to an “unreasonable” error or delay resulting from
“managerial” or ministerial acts. The amendment applies to
interest accruing with respect to deficiencies for taxable years
beginning after July 30, 1996; accordingly, the amendment is
inapplicable in the present case. See Woodral v. Commissioner,
112 T.C. 19, 25 n.8 (1999).
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