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taxes. In 1996, Congress amended the section to allow abatement
more often, but made the amendment effective only for interest
accruing on tax deficiencies or payments for tax years beginning
after the date of enactment--July 30, 1996. Petitioner, Charles
Durham, was under audit for his 1992-94 tax years when the
amendment was enacted. He wants to take advantage of the
amendment’s terms, and so challenges the constitutionality of its
effective date. The case comes to us on cross-motions for
summary judgment.
Background
Before the 1996 amendment, the Commissioner could abate
interest under section 6404(e) only when interest had accrued
because of an IRS employee’s error or delay in performing a
“ministerial act.” Sec. 6404(e) (1994) (“old section 6404(e)”);
see Woodral v. Commissioner, 112 T.C. 19, 24-25 (1999). But
“ministerial act” was narrowly defined as “a procedural or
mechanical act that does not involve the exercise of judgment or
discretion....” Proced. & Admin. Regs., sec. 301.6404-2T(b)(2),
Temporary Proced. & Admin. Regs., 52 Fed. Reg. 30163 (Aug. 13,
1987).2 This definition captured only such bureaucratic snafus
as delays in transferring a case between offices or in issuing an
already agreed-upon notice of deficiency. Id. Examples (1) and
(2).
2 The identical definition carried over to the final
regulations in effect for tax years commencing after July 30,
1996. Proced. & Admin. Regs., sec. 301.6404-2(b)(2).
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