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interest on petitioners’ Federal income tax liabilities for the
underlying years.
Discussion
In general, interest on a Federal income tax liability
begins to accrue on the due date of the return and continues to
accrue, compounding daily, until payment is made. 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
performing a ministerial act. Sec. 6404(e)(1).5 A ministerial
act means a procedural or mechanical act that does not involve
the exercise of judgment. Lee v. Commissioner, 113 T.C. 145,
149-150 (1999); sec. 301.6404-2T, Temporary Proced. & Admin.
Regs., 52 Fed. Reg. 30163 (Aug. 13, 1987). A prerequisite to the
relief contemplated by section 6404(e) is the “erroneous or
dilatory performance of a ministerial act” by the Commissioner’s
5 Sec. 6404(e) was amended by the Taxpayer Bill of Rights
2, Pub. L. 104-168, sec. 301, 110 Stat. 1457 (1996), to permit
the Commissioner to abate interest with respect to an
“unreasonable” error or delay resulting from “managerial” or
ministerial acts. The amendment is effective for interest
accruing with respect to deficiencies or payments for tax years
beginning after July 30, 1996, and is therefore inapplicable
here.
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