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Internal Revenue Service (IRS).2 Such an error or delay in
performing a ministerial act is taken into account only if it is
in no significant aspect attributable to the taxpayer and only if
it occurs after the IRS has contacted the taxpayer in writing
regarding the deficiency or payment.
Congress did not intend section 6404(e) to be “used
routinely to avoid payment of interest”; rather, it is to be
“utilized in instances where failure to abate interest would be
widely perceived as grossly unfair.” H. Rept. 99-426, at 844
(1985), 1986-3 C.B. (Vol. 2) 1, 844; S. Rept. 99-313, at 208
(1985), 1986-3 C.B. (Vol. 3) 1, 208.
For interest abatement claims made after July 30, 1996, the
Tax Court has jurisdiction to determine whether the
Commissioner’s failure to abate interest under section 6404(e)
was an abuse of discretion. See sec. 6404(i)(1);3 Woodral v.
Commissioner, 112 T.C. 19, 23 (1999).
In the petition, petitioner contends that respondent took an
“excessive amount of time in concluding the audit” and argues
2 In 1996, sec. 6404(e) was amended to permit abatement of
interest for “unreasonable” error or delay resulting from the
performance of ministerial or “managerial” acts. Taxpayer Bill
of Rights 2, Pub. L. 104-168, sec. 301(a)(1) and (2), 110 Stat.
1457 (1996). The amendment applies to tax years beginning after
July 30, 1996. Id. at sec. 301(c), 110 Stat. 1457. Therefore,
the amendment is inapplicable to the instant case.
3 Sec. 6404(i) was redesignated sec. 6404(h) by the Victims
of Terrorism Tax Relief Act of 2001, Pub. L. 107-134, sec.
112(d)(1)(B), 115 Stat. 2434-2435.
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Last modified: May 25, 2011