Thomas Edward Vanstone - Page 6

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          Sec. 301.6404-2T(b)(1), Temporary Proced. & Admin. Regs., 52 Fed.           
          Reg. 30162, 30163 (Aug. 13, 1987).3                                         
               Even where errors or delays are present, the decision to               
          abate interest remains discretionary.  Sec. 6404(e)(1).  This               
          Court may order an abatement only where the Commissioner’s                  
          failure to abate interest was an abuse of that discretion.  Sec.            
          6404(h)(1).4  The Commissioner’s exercise of discretion is                  
          entitled to due deference; in order to prevail, the taxpayer must           
          demonstrate that in not abating interest, the Commissioner                  
          exercised his discretion arbitrarily, capriciously, or without              
          sound basis in fact or law.  Woodral v. Commissioner, 112 T.C.              
          19, 23 (1999).                                                              
               Like all Federal courts, the Tax Court is a court of limited           
          jurisdiction, and we may exercise our jurisdiction only to the              
          extent authorized by Congress.  Sec. 7442; Naftel v.                        
          Commissioner, 85 T.C. 527, 529 (1985).  In proceedings brought by           
          taxpayers under section 6404(h), as is the case before us, the              
          jurisdiction of this Court is limited to a determination as to              

          3  The final regulations under sec. 6404 contain the same                   
          definition of a ministerial act as the temporary regulations.               
          Sec. 301.6404-2(b)(2), Proced. & Admin. Regs.  However, the final           
          regulations do not apply in this case because they apply only to            
          interest accruing with respect to deficiencies or payments for              
          taxable years beginning after July 30, 1996.  Id. par. (d).                 
          4  Sec. 6404(h) was formerly designated as sec. 6404(i), and                
          before that as sec. 6404(g).                                                

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