H&H Trim & Upholstery Co., Inc. - Page 10

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          the interest that accrued from January 16, 1997, through June 30,           
          1998.  Assuming that it was respondent’s obligation to accurately           
          advise petitioner of its outstanding employment tax liability,              
          and that petitioner reasonably expected respondent would do so              
          (see supra note 4), we consider the interest that accrued as a              
          result of respondent’s error to be unfair and, under the                    
          circumstances presented, excessive.  Because we find such                   
          interest to be excessive within the meaning of section 6404(a),             
          we hold that respondent’s failure to abate the unpaid portion of            
          such interest is an abuse of discretion.                                    
          Interest That Accrued Subsequent to June 30, 1998                           
               As of June 30, 1998, it was clear to petitioner that the               
          January 15, 1997, payment did not extinguish its then-outstanding           
          employment tax liability for the fourth quarter of 1993.  The               
          interest that accrued after June 30, 1998, is a result of                   
          petitioner’s decision not to pay that liability, rather than                
          respondent’s erroneous advice.  There is no evidence to establish           
          that during this period the interest was excessive, assessed                
          beyond the period of limitations, erroneous, or illegal.                    
          Accordingly, respondent’s failure to abate interest that accrued            
          subsequent to June 30, 1998, is not an abuse of discretion.                 
               To reflect the foregoing,                                              
                                             An appropriate decision                  
                                        will be entered.                              

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