- 7 -
occurs during the processing of a taxpayer’s case after all the
prerequisites to the act, such as conferences and review by
supervisors, have taken place. See Lee v. Commissioner, 113 T.C.
145, 150 (1999); sec. 301.6404-2(b)(2), Proced. & Admin. Regs.
The mere passage of time does not establish error or delay in
performing a ministerial act. See Cosgriff v. Commissioner, T.C.
Memo. 2000-241 (citing Lee v. Commissioner, supra at 150). A
managerial act means an administrative act that involves a
temporary or permanent loss of records or the exercise of
judgment or discretion relating to personnel management during
the processing of a taxpayer’s case. Sec. 301.6404-2(b)(1),
Proced. & Admin. Regs. In contrast, a decision concerning the
proper application of Federal tax law, or other applicable
Federal or State laws, is not a ministerial or managerial act.
See sec. 301.6404-2(b), Proced. & Admin. Regs.
When Congress enacted section 6404(e), it did not intend the
provision to be used routinely to avoid payment of interest.
Rather, Congress intended abatement of interest only where
failure to do so “would be widely perceived as grossly unfair.”
H. Rept. 99-426, at 844 (1985), 1986-3 C.B. (Vol. 2) 1, 844; S.
Rept. 99-313, at 208 (1986), 1986-3 C.B. (Vol. 3) 1, 208.
Section 6404(e) affords a taxpayer relief only if no significant
aspect of the error or delay can be attributed to the taxpayer
and only after the Commissioner has contacted the taxpayer in
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011