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“unreasonable” error or delay resulting from a ministerial or
managerial act.4 The regulations define a ministerial act as 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 prerequisites to the act, such as
conferences and review by supervisors, have taken place.” Sec.
301.6404-2(b)(2), Proced. & Admin. Regs. The regulations define
a managerial act as “an administrative act that occurs during the
processing of a taxpayer’s case involving the temporary or
permanent loss of records or the exercise of judgment or
discretion relating to management of personnel.” Sec. 301.6404-
2(b)(1), Proced. & Admin. Regs.
Petitioner asserts that respondent provided inconsistent
responses regarding the inclusion of the settlement proceeds in
petitioner’s gross income. The record indicates that respondent
consistently informed petitioner that the settlement proceeds
were includable in her 1998 gross income. There is nothing in
this record indicating that petitioner was advised that the
proceeds were excludable. In any event, even if respondent gave
erroneous advice, it would not constitute a “managerial act”.
4 Sec. 6404(i), formerly sec. 6404(g), is applicable to
requests for abatement after July 30, 1996. Taxpayer Bill of
Rights 2 (TBOR 2), Pub. L. 104-168, sec. 302, 110 Stat. 1457
(1996). Further, sec. 301(a)(1) and (2) of TBOR 2 permits
abatement of interest with respect to unreasonable error or delay
from “managerial” acts, effective for interest accruing with
respect to tax years beginning after July 30, 1996.
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Last modified: May 25, 2011