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Under current law, section 6404(e) would authorize abatement
of interest during periods in which the settlement of the
Wilshire case was delayed 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 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. Therefore, through September
1993, the delay was not due to a ministerial act. However,
further analysis is necessary in order to determine whether any
ministerial errors by respondent contributed to the subsequent
delays in petitioner’s case.
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