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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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Last modified: May 25, 2011