H&H Trim & Upholstery Co., Inc. - Page 9




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          is no statutory authority that supports the abatement of such               
          interest, respondent’s failure to abate is hardly an abuse of               
          discretion.  Therefore, respondent’s failure to abate interest              
          that accrued prior to January 16, 1997, is not an abuse of                  
          discretion.                                                                 
          Interest From January 16, 1997 Through June 30, 1998                        
               As of January 15, 1997, petitioner, in good faith,                     
          considered its Federal employment tax liability for the fourth              
          quarter of 1993 to have been completely satisfied upon payment of           
          the amount specified by respondent’s employee.  As of                       
          June 30, 1998, it was clear to petitioner that the January 15,              
          1997, payment did not entirely extinguish its Federal employment            
          tax liability for the fourth quarter of 1993 because that payment           
          did not include interest that had accrued but had not been                  
          assessed as of the payment date.                                            
               Under the circumstances, we are satisfied that, but for                
          respondent’s error, petitioner’s then-outstanding Federal                   
          employment tax liability for the fourth quarter of 1993 would               
          have been completely paid on January 15, 1997.  Had petitioner              
          completely paid its employment tax liability on January 15, 1997,           
          no additional interest would have accrued.                                  
               Although the point is not specifically conceded, respondent            
          makes little attempt to persuade us that, under these                       
          circumstances, it would not be unfair to charge petitioner with             






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