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OPINION
In general, interest on a Federal tax liability begins to
accrue from the last date prescribed for payment of such tax and
continues to accrue, compounding daily, until payment is made.
See secs. 6601(a), 6622. Although the accrual of interest occurs
continually, it is assessed only periodically. Section 6404(a)
provides that the Commissioner is authorized to abate the unpaid
portion of the assessment of any tax or any liability in respect
thereof that is (1) excessive in amount, (2) assessed after the
expiration of the period of limitations properly applicable
thereto, or (3) erroneously or illegally assessed. The reference
to “any tax” in section 6404(a) includes employment taxes,
Woodral v. Commissioner, 112 T.C. 19 (1999), and the reference to
“any liability in respect” to the tax includes interest that has
accrued on the underlying tax.3 The Commissioner’s failure to
abate interest as provided in section 6404(a) is subject to
review for abuse of discretion by this Court. Sec. 6404(h)(1);
Woodral v. Commissioner, supra at 22-23.
We are satisfied that the interest that petitioner seeks to
have abated was not assessed (or will not be assessed)
erroneously, illegally, or after the period of limitations
3 As best as can be determined from the record, as of the
date of trial, substantially all, if not all, of petitioner’s
then-outstanding unpaid employment tax liability for the fourth
quarter of 1993 was attributable to interest.
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Last modified: May 25, 2011