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only for periods after the IRS has contacted the taxpayer in
writing with respect to the deficiency or payment. Sec.
6404(e)(1).
This Court may order abatement of interest only when the
Commissioner has abused his discretion in denying a taxpayer’s
request to abate interest. Sec. 6404(h). To show an abuse of
discretion, 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).
The Appeals officer denied petitioners’ request for
abatement in part because the IRS did not notify them of the
Redwood audit until February 9, 2000, when the notice of
adjustment was sent. Section 6404(e) limits the Commissioner’s
authority to abate interest to periods after which the IRS has
contacted the taxpayer in writing about the deficiency or
payment.
TEFRA requires the Commissioner to notify certain partners
of the beginning and ending of a partnership audit. Sec.
6223(a). The Commissioner is not required to give notice to a
partner if the partnership has more than 100 partners, and the
partner has less than a 1-percent profits interest. Sec.
6223(b)(1). In the case of an indirect partner owning an
interest in the partnership through a pass-thru entity that would
otherwise be entitled to notice, the Commissioner is required to
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Last modified: May 25, 2011