Linda Mitchell - Page 11

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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.             
          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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