- 11 - 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.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011