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(a) The Commissioner erred in asserting that section
6404(e) of the Internal Revenue Code does not
apply to employment taxes.
(b) The Internal Revenue Service unreasonably delayed
the processing of the taxpayer’s offer in
compromise for approximately four (4) years. The
taxpayer requested abatement of the interest that
accrued on its outstanding payroll tax liabilities
between the time that it initially submitted its
offer in compromise (March 5, 2000) and the date
that the offer was ultimately rejected
(February 5, 2004) by the Commissioner of Internal
Revenue.
Thereafter, respondent filed a motion to dismiss for lack of
jurisdiction, contending that respondent had not issued a notice
of final determination that would confer jurisdiction on the
Court under section 6404. Respondent’s motion was denied,
because the Court found that the letters sent to petitioner on
August 5 and 9, 2004, which unequivocally stated that
petitioner’s request for abatement of interest was denied,
constituted a final notice of determination not to abate interest
sufficient to confer jurisdiction on the Court.
The pending motion for summary judgment by respondent is
based on our holding on Woodral v. Commissioner, supra, that
respondent lacks authority to abate assessments of interest on
employment taxes under section 6404(e). Therefore, there can
have been no abuse of discretion in refusing to abate interest.
Respondent’s motion further argues:
This case is unlike H&H Trim & Upholstery Co. v.
Commissioner, T.C. Memo. 2003-9, where the Court found
that section 6404(a) applied to some of the accrued
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