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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.
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