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it occurs after the IRS has contacted the taxpayer in writing
regarding the deficiency or payment.
Section 6404(e) is not intended to be “used routinely to
avoid payment of interest”, but rather 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); Woodral v.
Commissioner, 112 T.C. 19, 23 (1999). Where the taxpayer has
already paid the interest that is the subject of the request for
abatement, this Court has jurisdiction to determine the amount of
any overpayment to be refunded or credited to the taxpayer. See
secs. 6404(i)(2)(B), 6512(b).
Petitioner contends that respondent failed to request
financial information from her and to take other steps prescribed
by the Internal Revenue Manual before classifying the 1988
liability as uncollectible, without notifying her of the unpaid
balance. On brief, petitioner contends that respondent’s failure
to take these steps “left her with the reasonable belief she
didn’t owe the tax”, and thus caused her to delay paying off the
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