- 10 - 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.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011