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status because the collection branch did not have the manpower to
pursue actively the amounts.
We note that once an account is placed in 53 status, the
Commissioner is required to advise the taxpayer: (1) If the
taxpayer’s financial condition changes, payment of the tax may be
warranted; (2) any refunds on future Federal tax returns will be
applied to the outstanding liability; (3) interest and penalty
will continue to accrue on the account; and (4) an annual notice
will be sent reminding the taxpayer of the balance due. 2
Adminstration, Internal Revenue Manual (CCH), sec. 5.19.1.6.1.7
at 18,299-119. We further note that the period of limitations
for collection has not expired. See sec. 6502(a). Although
respondent reported petitioner’s account as 53 status, respondent
is still able to collect the balance from petitioner.
There is no evidence that the accrual of interest was
attributable to respondent’s error or delay in performing a
ministerial act. The fact is that petitioner is not entitled to
abatement of the interest because petitioner caused the delay by
not paying the full amount when due. As a result, we hold that
respondent did not abuse his discretion in failing to abate the
assessment of interest.
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Last modified: May 25, 2011