Stanley R. Harbaugh and Bonnie L. Harbaugh - Page 13

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          find that respondent should have abated the interest that accrued           
          from December 22, 1996, until the date it became clear to                   
          petitioners that their liabilities had not, in fact, been                   
          extinguished.  The first notice indicating that there were                  
          amounts still outstanding after petitioners’ July 22, 1999,                 
          payment was the monthly statement dated August 11, 1999.                    
          Therefore, we conclude that respondent abused his discretion in             
          refusing to abate interest that accrued during the period from              
          December 22, 1996 to August 11, 1999.                                       
          August 11, 1999 to Present                                                  
               After the August 11, 1999, statement was received by                   
          petitioners, petitioners were on notice that their understanding            
          of the installment agreement was incorrect and that some                    
          additional amounts were still due.  Their failure to make any               
          payments after that date was a result of their decision to                  
          challenge respondent’s position.  There was no erroneous or                 
          dilatory performance of a ministerial act on respondent’s part to           
          cause this delay.  Therefore, we hold that respondent did not               
          abuse his discretion in refusing to abate interest for the period           
          after August 11, 1999.                                                      

             Decision will be entered                                                 
                                        under Rule 155.                               

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