- 10 - exercised this discretion arbitrarily, capriciously, or without sound basis in fact or law. Woodral v. Commissioner, supra at 23. Congress intended for the Commissioner to abate interest where the failure to abate interest would be perceived as grossly unfair. Lee v. Commissioner, supra at 149. Congress, however, did not intend for abatement to be used routinely to avoid the payment of interest. Id. An error or delay is taken into account only (1) if no significant aspect of the error or delay can be attributed to the taxpayer and (2) after the IRS has contacted the taxpayer in writing with respect to the deficiency or payment. Sec. 6404(e)(1); Lee v. Commissioner, supra at 149. Petitioner’s complaint essentially is that because respondent failed to restore his withholding credits totaling $2,624 until 2001, if he had paid his tax liability for 1987 and 1989 before 2001 he would have paid the wrong amount. Petitioner’s argument has no merit. Even though respondent did not give petitioner credit for his withholdings until 2001, this delay did not prevent petitioner from filing tax returns for 1987 and 1989. In fact, respondent mailed petitioner seven taxpayer delinquency notices informing him that he had not filed his 1987 or 1989 tax return. If petitioner had filed returns for 1987 and 1989,Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011