Christine A. Dormer - Page 10

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          managerial nor a ministerial act.  Sec. 301.6404-2(b)(1) and (2),           
          Proced. & Admin. Regs.                                                      
               Section 6404(h)(1) provides the Tax Court with jurisdiction            
          to review denials of requests for abatement of interest under an            
          abuse of discretion standard.  Action constitutes an abuse of               
          discretion where arbitrary, capricious, or without sound basis in           
          fact or law.  Woodral v. Commissioner, 112 T.C. 19, 23 (1999).              
          Therefore, the question here before the Court is whether this               
          case reveals a managerial or ministerial error such that                    
          respondent’s failure to abate interest reflects abused                      
          discretion.                                                                 
               Petitioner’s position is that payment of the $4,244.75                 
          resolved her liabilities for 1998 in full, including interest.              
          Thus, petitioner is essentially arguing that the settlement                 
          represented a compromise of her 1998 tax year for $4,244.75.  If            
          in fact petitioner reached an enforceable agreement to settle all           
          liabilities for 1998, including interest, with a payment of                 
          $4,244.75, failure by IRS employees properly to communicate this            
          information to the Service Center and/or failure by Service                 
          Center personnel properly to take into account and input this               
          information in computing any final balance on petitioner’s                  
          account was a mere ministerial error.  No judgment or discretion            
          would have remained to be exercised once such an enforceable                
          agreement had come into being.                                              






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