Scanlon White, Inc. - Page 3

                                        - 3 -                                         
               (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                    





Page:  Previous  1  2  3  4  5  6  7  8  Next

Last modified: May 25, 2011