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Section 6212(a) authorizes the Secretary5 to issue notices of
deficiency with respect to taxes imposed by subtitle A or B or
chapter 41, 42, 43, or 44 of the Code. These subtitles and
chapters of the Code cover taxes on income, estates, gifts,
certain qualified pension plans, and qualified investment
entities. The Code provisions related to employment taxes are
contained in subtitle C.
The Commissioner’s authority to abate an assessment of
interest involves the exercise of discretion, and we must give
due deference to the Commissioner’s discretion. Woodral v.
Commissioner, supra at 23; Mailman v. Commissioner, 91 T.C. 1079,
1082 (1988). In order to prevail, petitioner must prove that the
Commissioner abused his discretion by exercising it arbitrarily,
capriciously, or without sound basis in fact or law. Woodral v.
Commissioner, supra at 23; Mailman v. Commissioner, supra at
1084; see also sec. 6404(i)(1); Rule 142(a).
In Woodral v. Commissioner, supra at 25, we held that the
Commissioner lacks authority under section 6404(e) to abate an
assessment of interest on employment taxes because neither
section 6211 nor section 6212(a) mentions subtitle C. We also
5The term “Secretary” means “the Secretary of the Treasury
or his delegate”, sec. 7701(a)(11)(B), and the term “or his
delegate” means “any officer, employee, or agency of the Treasury
Department duly authorized by the Secretary of the Treasury
directly, or indirectly by one or more redelegations of
authority, to perform the function mentioned or described in the
context”, sec. 7701(a)(12)(A).
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Last modified: May 25, 2011