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In 1996, Congress amended section 6404(e) to allow abatement
attributable to erroneous or dilatory performance by respondent
of managerial acts, but Congress made the amendment effective
only for interest accruing on tax deficiencies or payments for
tax years beginning after July 30, 1996. The former standard for
interest abatement, therefore, applies to 1994, while the amended
provision applies to petitioner’s interest abatement claim
regarding 1997.
Specifically, for 1994 the Commissioner may abate the
assessment of interest with respect to an “error or delay” by an
officer or employee of the IRS in performing a “ministerial act.”
Sec. 6404(e)(1). For 1997, the Commissioner may abate the
assessment of interest with respect to any “unreasonable error or
delay” resulting from “managerial” as well as ministerial acts.
Sec. 6404(e)(1); see Taxpayer Bill of Rights 2, Pub. L. 104-168;
sec. 301(a)(1) and (2), 110 Stat. 1457 (1996) (effective for
interest accruing with respect to deficiencies or payments for
taxable years beginning after July 30, 1996).
A “ministerial act” is a procedural or mechanical act that
does not involve the exercise of judgment or discretion and that
occurs during the processing of a taxpayer’s case after all
discretionary decisions in the case have occurred. Goblirsch v.
Commissioner, T.C. Memo. 2005-78 (citing Lee v. Commissioner,
supra, and Donovan v. Commissioner, T.C. Memo. 2000-220); sec.
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Last modified: May 25, 2011