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1. Held: R’s failure to abate interest for any
disputed period through Jan. 24, 1995, and any disputed
period from Apr. 25, 1995, onward was not an abuse of
discretion, because the delays that Ps identify are not
attributable to R’s error or delay in performing a
ministerial act. R’s failure to abate interest for the
period Jan. 25 through Apr. 24, 1995, was an abuse of
discretion because it was attributable to an
unjustified delay in R’s official performing a
ministerial act. Sec. 6404(e), I.R.C. 1986.
2. Held, further, R has conceded errors in
computing amounts of interest; in the exercise of our
overpayment jurisdiction R is sustained as to each of
the disputed unconceded items. See sec. 6404(h)(2)(B),
I.R.C. 1986.
During the course of Ps’ efforts to persuade R to
abate the interest, in response to R’s agent’s
suggestion, Ps made an offer in compromise of $40,000
to settle about $120,000 of interest on 4 years of
income tax liabilities. Later, again at R’s agent’s
suggestion, Ps withdrew their offer in compromise. A
few months later, R returned Ps’ $40,000 without
interest.
3. Held, further, on this record we shall not
direct R to abate any interest, nor shall we require
recomputation of interest on account of the $40,000.
Matthew J. McCann, for petitioners.
Elizabeth S. Henn and William J. Gregg, for respondent.
MEMORANDUM FINDINGS OF FACT AND OPINION
CHABOT, Judge: Respondent issued a notice of determination
partially disallowing petitioners’ claim to abate interest with
respect to underpayments for 1978, 1979, 1981, 1982, and 1983.
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