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abatement where the Commissioner’s failure to abate interest was
an abuse of discretion. Sec. 6404(i). The taxpayer must
demonstrate that the Commissioner, in failing to abate interest,
exercised his discretion arbitrarily, capriciously, or without
sound basis in law or fact. Woodral v. Commissioner, 112 T.C.
19, 23 (1999).
Petitioner requests abatement of interest pursuant to
section 6404(e)(1). Section 6404(e)(1), as applicable to
petitioner’s 1980 and 1983 tax years,2 reads as follows:
Sec. 6404(e). Assessments of interest
attributable to errors and delays by Internal Revenue
Service.--
(1) In General.--In the case of any assessment of
interest on–-
(A) any deficiency attributable in whole or
in part to any error or delay by an officer or
employee of the Internal Revenue Service (acting
in his official capacity) in performing a
ministerial act, or
(B) any payment of any tax described in
section 6212(a) to the extent that any error or
delay in such payment is attributable to such
officer or employee being erroneous or dilatory in
performing a ministerial act,
the Secretary may abate the assessment of all or any
part of such interest for any period. For purposes of
the preceding sentence, an error or delay shall be
2 Congress amended sec. 6404(e) in 1996 to permit abatement
of interest for “unreasonable” error or delay in performing a
“ministerial or managerial” act. Taxpayer Bill of Rights 2 (TBOR
2), Pub. L. 104-168, sec. 301(a)(1) and (2), 110 Stat. 1457
(1996). That standard, however, applies to tax years beginning
after July 30, 1996. TBOR 2 sec. 301(c), 110 Stat. 1457.
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Last modified: May 25, 2011