- 28 -
petitioner is liable for the addition to tax under section
6651(a)(1).
Petitioner argues that earlier administrative actions of the
IRS require a different result. Petitioner asserts that, because
of previous abatement of $867.92 in late filing penalties,
section 6406 operates to estop respondent from assessing $16,494
in late filing penalties that were subsequently determined in the
notice of deficiency for 1995. Petitioner is incorrect. Section
6406 precludes review by "any other administrative or accounting
officer, employee or agent of the United States" (emphasis added)
of a decision of the Secretary or his delegate with respect to a
claim by the taxpayer. Secs. 6406, 7701(a)(11)(B). By its
terms, section 6406 does not preclude the Secretary or his
delegate from reviewing prior actions. As explained in Hacker v.
Commissioner, T.C. Memo. 1993-285, affd. 29 F.3d 632 (9th Cir.
1994):
The legislative history of section 6406 indicates that
such section was originally added for the purpose of
prohibiting review of a decision of the Secretary of
the Treasury (and his delegates, including the
Commissioner) by employees of other agencies, such as
the Comptroller General. See Hearings on H.R. 8245
Before the Senate Comm. on Finance, 67th Cong., 1st
Sess. 299-300 (Sept. 1-Oct. 1, 1921); see also Crocker
v. United States, 323 F. Supp. 718, 724-725 (N.D. Miss.
1971). Clearly, section 6406 does not estop the
Commissioner, or his successor, from reviewing his own
decisions. See E.A. Landreth Co. v. Commissioner, 11
B.T.A. 1, 23 (1928); see also Burnet v. Porter, 283
U.S. 230 (1931); McIlhenny v. Commissioner, 39 F.2d 356
(3d Cir. 1930), affg. 13 B.T.A. 288 (1928); Estate of
Meyer v. Commissioner, 58 T.C. 69, 71 (1972).
Page: Previous 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 NextLast modified: May 25, 2011