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in the resolution of petitioners’ case after the overall
settlement was reached.
Under current law, section 6404(e) would authorize abatement
of interest during periods in which the settlement of the Redwood
case was set aside as a result of managerial errors. However, the
language added to section 6404(e) permitting the abatement of
interest for unreasonable errors or delays in performing
managerial acts applies only to tax years beginning after July 30,
1996, and thus does not apply in the present case. Taxpayer Bill
of Rights 2, Pub. L. 104-168, sec. 301(c), 110 Stat. 1452, 1457
(1996).
For tax years prior to 1996, section 6404(e) allows interest
abatement only for errors or delays by an officer or employee of
the IRS in performing ministerial acts. Respondent’s decision to
assign only one attorney to the Swanton TEFRA cases was not a
ministerial act, because the decision required discretion and
judgment. See Mekulsia v. Commissioner, T.C. Memo. 2003-138;
Beagles v. Commissioner, supra; Jacobs v. Commissioner, T.C. Memo.
2000-123; sec. 301.6404-2T(b)(2), Examples (4) and (5), Temporary
Proced. & Admin. Regs., 52 Fed. Reg. 30163 (Aug. 13, 1987). The
settlement negotiations that lasted until September 1993 also were
not ministerial. So, through September 1993, the delay was not
due to a ministerial act. However, further analysis is necessary
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