- 9 -
the Appeals officer observes that the $3,506 payment that
respondent applied to 1989 pursuant to petitioners’ designation
is the amount agreed upon in settlement of petitioners’ 1990
Federal income tax liability. According to the Appeals officer,
“it might have been * * * [petitioners’] intent to file an
interest abatement request with respect to TY1990 rather than
TY1989". Neither party commented on this observation in any
document submitted in this proceeding.
Discussion
It appears to us that the observation of the Appeals officer
is well made. Nevertheless, taking our lead from the parties, we
ignore the possibility that this proceeding results from a
mistaken reference to 1989 and consider whether respondent’s
failure to abate some of the interest applicable to petitioners’
Federal income tax for that year is an abuse of discretion. For
the following reasons, we hold that it is not.
In general, interest on a Federal income tax liability,
including a deficiency, begins to accrue on the due date of the
return and continues to accrue, compounding daily, until payment
is made. See secs. 6601(a), 6622.
The Commissioner has the authority to abate the assessment
of interest on a deficiency or payment of income tax if the
accrual of such interest is attributable to an error or delay by
an official or employee of the Internal Revenue Service in
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011