- 18 -
of the record, petitioners have not shown that their failure to
timely pay tax was due to reasonable cause and not willful
neglect. Therefore, respondent did not improperly refuse to
abate the addition to tax for late payment from March 27, 2003,
through July 30, 2003.
C. Petitioners’ Claim for Damages
Petitioners claim emotional damages of $10,000 and monetary
compensation of $8,406.56,11 alleging that the premature and
unnecessary filing of the lien adversely affected their credit
rating, which prevented them from refinancing their home and
hindered their ability to pay their tax liabilities; as a result,
the lien caused them to incur a loan at a higher interest rate.
Petitioners, however, do not cite or rely on any specific statute
as a basis for this claim.
Although we recognize that the filing of such a lien may
have the negative effects of creating a cloud on the taxpayer’s
title to property and impairing the taxpayer’s creditworthiness,
see Magana v. Commissioner, 118 T.C. 488, 490 (2002), we
generally have no jurisdiction over such claims, sec. 7433(a);
see Gerakios v. Commissioner, T.C. Memo. 2004-203 (holding that
11 Petitioners calculate this amount as the difference
payable over a 10-year term between the 4-percent interest rate
on the July 14, 2003 loan application and the 6.25 percent
interest rate on the Oct. 16, 2003 loan application (i.e.,
$725.24 ($64,928.88 tax owed at 6.25-percent amortized over 30
years) less $655.19 ($64,928.88 tax owed at 4-percent amortized
over 30 years) multiplied by 10 years equals $8,406.66).
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