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that the used cars should be assigned a 20-percent salvage value.
The settlement resulted in a 1995 deficiency of $9,030 (after
application of a 1998 net operating loss carryback). On May 22,
2000, respondent assessed $8,535.33 of interest on the 1995
deficiency. On June 16, 2000, petitioner paid the 1995
deficiency, exclusive of interest.
On September 18, 2000, petitioner filed a Form 843, Claim
for Refund and Request for Abatement, requesting abatement of
$5,210.10 of the then-accrued interest. By way of explanation,
petitioner stated on the Form 843:
The taxpayer believes a reasonable period to resolve
the issue should have been one year. Therefore, the
taxpayer [requests] an abatement of the interest in the
amount of $5,210.10. Leaving a balance due of
$3,437.40. This amount represents a reasonable amount
of interest on the balance owed of $9,030.
On February 1, 2001, petitioner paid $3,473.40 of the interest.
On July 13, 2001, respondent issued a Notice of Final
Determination disallowing petitioner’s request for abatement of
interest.
Discussion
Under section 6404(e)(1), the Secretary may abate interest
on any deficiency or payment of income, gift, estate, and certain
excise taxes to the extent that the deficiency or any error or
delay in such payment is attributable to erroneous or dilatory
performance of a ministerial act by an officer or employee of the
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