- 6 - Section 6404(e)(2) provides: The Secretary shall abate the assessment of all interest on any erroneous refund under section 6602 until the date demand for repayment is made, unless–-(A) the taxpayer (or a related party) has in any way caused such erroneous refund, or (B) such erroneous refund exceeds $50,000. Without passing upon the question of whether the refund in this case constitutes an erroneous refund that was caused by petitioner's failure to include a computation of the AMT, this Court has no jurisdiction over an abatement of interest issue arising under section 6404(e). As the Court noted in 508 Clinton St. Corp. v. Commissioner, 89 T.C. 352, 355 (1987): "Section 6404(e), by its very terms, does not operate until after there has been an assessment of interest, which has not yet occurred in this case." In this case, neither the deficiency nor the interest on the deficiency has been assessed, nor can any assessment be made until the decision in this case is entered. Petitioner may file with respondent an administrative request for abatement of any interest assessed. If, in a notice of final determination, petitioner's request is denied, petitioner may then petition this Court for a review of that determination. However, this Court will order an abatement only if it is shown that the Commissioner abused his discretion in denying thePage: Previous 1 2 3 4 5 6 7 8 Next
Last modified: May 25, 2011