- 8 - sound basis in fact or law. Woodral v. Commissioner, 112 T.C. 19, 23 (1999); Wright v. Commissioner, supra. The authority to abate interest has limitations. Although Congress intended for the Commissioner to abate interest where the failure to abate interest would be widely perceived as grossly unfair,6 section 6404(e)(1) also provides that “an error or delay shall be taken into account only if no significant aspect of such error or delay can be attributed to the taxpayer involved, and after the Internal Revenue Service has contacted the taxpayer in writing with respect to such deficiency or payment.” Respondent has abated all penalties, totaling $15,590. Respondent has also abated interest in the total amount of $1,458 for the period April 17, 1998, through April 30, 1999, when Mr. Cool of the Problem Resolution Office led petitioner to believe she had overpaid her tax liability and would be entitled to a refund. Petitioner’s 1996 Federal income tax return was filed and the tax was paid on April 16, 1998, 1 year and 1 day after its due date. If a taxpayer fails to file a return and fails to pay the tax owed, section 6404(e)(1) does not apply to the interest that accrues on the unpaid tax before the Commissioner contacts 6 See Tax Reform Act of 1986, Pub. L. 99-514, sec. 1563(a), 100 Stat. 2762; S. Rept. 99-313, at 208 (1986), 1986-3 C.B. (Vol.3) 1, 208.Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011