- 10 - income tax liability, and he issued a notice of deficiency reflecting his determination before the period of limitations for assessment provided by the Internal Revenue Code had expired. Each of these adjustments required respondent to apply Federal income tax law to facts that petitioners provided. None of respondent’s adjustments to petitioners’ 2000 return constituted a ministerial or managerial act within the meaning of section 6404(e). In this case it was petitioners’ own mistakes that caused the delay in correctly calculating petitioners’ 2000 income tax liability. Section 6404(e) permits an abatement of interest only when the interest is not attributable to error or delay by the taxpayers. Moreover, most of petitioners’ argument is directed to respondent’s perceived delay in identifying petitioners’ mistakes and correcting them. However, section 6404(e) does not authorize the abatement of interest from the due date of the return until the Commissioner contacts a taxpayer in writing with respect to the deficiency. In this case respondent did not contact petitioner in writing with respect to the 2000 income tax deficiency until April 22, 2002. Respondent’s failure to abate interest from the date petitioners’ return was filed to April 22, 2002, was not, and under section 6404(e) cannot be, an abuse of discretion. See sec. 6404(e); Donovan v. Commissioner, supra; H. Rept. 99-246, supra at 844, 1986-3 C.B. (Vol. 2) at 844.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011