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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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