Nicholas J. and Diane L. Palihnich - Page 2

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               interest for 1981 resulting from R’s denial of Ps’                     
               White Rim deductions.                                                  
                    Held:  R’s loss of Ps’ 1981-82 amended returns                    
               from May 1987 to March 1998 was a ministerial error for                
               purposes of sec. 6404(e), I.R.C.                                       
                    Held, further, R’s refusal to abate interest that                 
               accrued from May 1987 to March 1998 on Ps’ tax                         
               liability for 1980 was an abuse of discretion.                         
                    Held, further, R’s refusal to abate interest that                 
               accrued other than from May 1987 to March 1998 was not                 
               an abuse of discretion.                                                

               Kenneth R. Cohen, for petitioners.                                     
               Shawna A. Early, for respondent.                                       



                       MEMORANDUM FINDINGS OF FACT AND OPINION                        

               COLVIN, Judge:  Respondent issued a final determination                
          disallowing petitioners’ claim under section 6404(e) for                    
          abatement of interest related to petitioners’ 1980 and 1981 tax             
          years.  Petitioners timely filed a petition under section                   
          6404(g)1 and Rule 280.                                                      
               The issue for decision is whether respondent’s denial of               
          petitioners’ request to abate interest relating to petitioners’             



               1  This was redesignated sec. 6404(i) by the Internal                  
          Revenue Service Restructuring and Reform Act of 1998, Pub. L.               
          105-206, secs. 3305(a), 3309(a), 112 Stat. 743, 745.  Sec.                  
          6404(i) was later redesignated sec. 6404(h) by the Victims of               
          Terrorism Relief Act of 2001, Pub. L. 107-134, sec. 112(d)(1)(B),           
          115 Stat. 2435 (2002).                                                      




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