- 14 - requirements because all of their offers were substantially less than the value of their available assets. We conclude that petitioners are liable for the addition to tax under section 6651(a)(2) for failure to pay tax. C. Whether Respondent’s Failure To Abate Interest Was an Abuse of Discretion The parties stipulated that respondent misplaced petitioners’ offer in compromise from about April 15, 1996, to April 16, 1997.5 The Commissioner may abate part or all of an assessment of interest on any deficiency or payment of income, gift, estate, and certain excise tax to the extent that any error or delay in payment is attributable to erroneous or dilatory performance of a ministerial act by an officer or employee of the Commissioner if: (a) The erroneous or dilatory performance of the ministerial act occurred after the Commissioner notified the taxpayer in writing about the deficiency or payment, and (b) the taxpayer did not contribute significantly to the error or delay. See sec. 6404(e)(1). We apply an abuse of discretion standard in reviewing the Commissioner’s failure to abate interest. Krugman v. Commissioner, 112 T.C. 230, 239 (1999); Woodral v. Commissioner, 112 T.C. 19, 23 (1999). Petitioners contend that respondent’s failure to abate interest that accrued during the 5 The burden of proof does not affect our disposition of this issue because no fact issue is in dispute relating to petitioners’ claim.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011