John M. Mekulsia - Page 18

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          correctly determined because of petitioner’s involvement in a               
          tax-motivated transaction.                                                  
               On August 14, 2000, respondent issued petitioner a final               
          determination letter disallowing petitioner’s request for                   
          interest abatement for the tax years 1982 through 1987.                     
          Respondent based the disallowance on the fact that no errors or             
          delays that merit interest abatement were discovered in                     
          respondent’s review of available records and other information.             
          Respondent informed petitioner that he could file a Tax Court               
          petition for a review of respondent’s denial of interest                    
          abatement if he disagreed with the final determination.                     
          A.  The Commissioner’s Authority To Abate Interest                          
               In general, interest on an underpayment of income tax begins           
          to accrue on the due date of the return for the tax and continues           
          to accrue, compounded daily, until payment is made.  See secs.              
          6601(a), 6622(a).                                                           
               Pursuant to section 6404(e)(1), as it applies in this case,            
          the Commissioner may abate the assessment of interest on:  (1)              
          Any deficiency attributable to any error or delay by an officer             
          or employee of the IRS in performing a ministerial act, or (2)              
          any payment of any tax described in section 6212(a) to the extent           
          that any error or delay in payment is attributable to the                   

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Last modified: May 25, 2011