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Commissioner, 82 T.C. 989, 999, 1000 (1984), is instructive in
that regard:
However, once our deficiency jurisdiction has been
properly invoked, we will examine de novo the merits of
respondent’s deficiency determinations, including his
exercise of discretion under section 6081 [filing
extension], to the extent that the alleged deficiency
and any addition to tax within our deficiency
jurisdiction (see sec. 6662) [now sec. 6665] turn upon
respondent’s discretionary actions. * * *
* * * Rather, our review of respondent’s denial of an
extension of time to file the estate tax return in this
case is necessary for us to determine the merits of
respondent’s substantive determination of a deficiency.
Here the sole reason for denial of the section 2032A
special use election (and hence the basis for the major
portion of the asserted deficiency) is the assertion
that the estate tax return was not timely filed.
The approach suggested by Estate of Gardner (albeit in the
context of whether the Commissioner’s discretion under section
6081 is reviewable at all) is an appropriate and workable means
of determining whether our review of an exercise of discretion by
the Commissioner is properly the subject of a trial de novo.
Applying that test to section 6015(f), the Commissioner’s
exercise of discretion under that provision is not relevant to
his determination of the existence or amount of a deficiency in
12(...continued)
majority opinion cites three recent interest abatement cases
(each the subject of a memorandum opinion) in which we conducted
trials de novo. Majority op. p. 12. While the issue is not
before us today, we would conclude that, for the same reasons
discussed herein, our review of the Commissioner’s interest
abatement denials is not properly the subject of de novo
proceedings.
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