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Discussion
Interest on a Federal income tax liability, including a
fraud penalty, generally begins to accrue on the due date of the
return. Secs. 6601(a), (e)(2)(B), 6622.
The Commissioner has authority to abate an assessment of
interest on a deficiency or payment of income tax if the accrual
of such interest is attributable to an error or delay by an
officer or employee of the Internal Revenue Service in performing
a ministerial act. Sec. 6404(e)(1).3 A ministerial act means a
procedural or mechanical act that does not involve the exercise
of judgment. Lee v. Commissioner, 113 T.C. 145, 149-150 (1999);
sec. 301.6404-2T, Temporary Proced. & Admin. Regs., 52 Fed. Reg.
30163 (Aug. 13, 1987). Any such error or delay shall be taken
into account “only * * * after the Internal Revenue Service has
contacted the taxpayer in writing with respect to * * * [the]
deficiency or payment” on which the interest has accrued. Sec.
6404(e)(1). Finally, the legislative history indicates that
Congress did not intend the abatement authority to be used
routinely to avoid payment of interest; rather, Congress intended
the provision to be used in instances “where failure to abate
3 Sec. 6404(e) was amended by the Taxpayer Bill of Rights 2,
Pub. L. 104-168, sec. 301, 110 Stat. 1457 (1996), to permit the
Commissioner to abate interest with respect to an “unreasonable”
error or delay resulting from “managerial” or ministerial acts.
The amendment is effective for interest accruing with respect to
deficiencies or payments for tax years beginning after July 30,
1996, and is therefore inapplicable here.
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Last modified: May 25, 2011