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Petitioner challenged the imposition of the additions to tax
to this Court. On January 25, 2001, the Court in an opinion
sustained the Commissioner’s determination with respect to the
additions to tax. Hunt v. Commissioner, T.C. Memo. 2001-15.
On September 18, 2001, respondent issued a notice of final
determination disallowing petitioner’s claim for interest
abatement for 1982. Petitioner filed a timely petition and an
amended petition for review of respondent’s failure to abate
interest.
Discussion
Where the Commissioner abuses his discretion in failing to
abate interest under section 6404, this Court may order
abatement. Sec. 6404(h)(1). In order to prevail, a taxpayer
must prove that the Commissioner exercised this discretion
arbitrarily, capriciously, or without sound basis in fact or law.
Woodral v. Commissioner, 112 T.C. 19, 23 (1999). In her
petitions, petitioner’s only allegation is that respondent abused
his discretion by failing to apply section 6404(g).
In her petitions and on brief, petitioner relies solely on
section 6404(g)(1).2 Section 6404(g) was added to the Code by
2 Sec. 6404(g)(1) requires the suspension of interest if the
taxpayer timely files a return and the Secretary fails to notify
the taxpayer of the liability and a basis for the liability
before 1 year (18 months with respect to taxable years beginning
after July 22, 1998, and before Jan. 1, 2004) from the later of
(1) the date on which the return is filed, or (2) the due date of
(continued...)
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Last modified: May 25, 2011