Linda Mitchell - Page 7

                                        - 7 -                                         
               On October 7, 2002, respondent issued to petitioner a Full             
          Disallowance-Final Determination, disallowing petitioner’s                  
          request for an abatement of interest.  Respondent denied the                
          request on the basis of the following:                                      
               We did not find any errors or delays relating to the                   
               performance of a ministerial act by an IRS employee.  The              
               law allows for possible interest abatement only when there             
               is an error or delay caused by an IRS employee in performing           
               a ministerial act, which is defined as a procedural or                 
               mechanical act that does not involve the exercise of                   
               judgment or discretion.  In your claim and in your appeal              
               letter, you requested abatement of all the assessed interest           
               on the 1994 tax account.  You did not contend that there was           
               any error or delay by the IRS in the process of assessing              
               the additional tax liability on the 1994 tax account.  You             
               simply stated that you thought you had full paid the amount            
               of additional tax liability due, and that once the tax                 
               liability was paid, you understood that the assessed                   
               interest amount could be negotiated for abatement.  You then           
               explained that you have financial problems and requested               
               that the assessed interest be abated due to your inability             
               to pay.  However, a review of the requirements of the law              
               [IRC section 6404(e)] reveals that interest assessed on the            
               tax account cannot be abated unless the specific                       
               requirements of the law are met.  There is no provision in             
               this law to negotiate the amount of interest due required by           
               the law or to consider reasons of ‘inability to pay’.                  
               Therefore, your claim for interest abatement cannot be                 
          On October 28, 2002, petitioner filed a Petition for Review of              
          Failure to Abate Interest Under Code Section 6404 with the Court            
          disputing respondent’s determination.                                       
               Section 6404(e)(1) provides that the Commissioner may abate            
          the assessment of interest on payment of tax to the extent a                
          delay in such payment is attributable to any error or delay by an           

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  Next

Last modified: May 25, 2011