- 5 - The Nicholses finally requested interest abatement on October 31, 2003, in a letter sent to an IRS agent not involved in the CDP process. In that letter, they asked for an abatement of 75% of the accrued interest because of “numerous lengthy spans of time during which the files just sat on the respective personnel’s desks.” They also claimed that the initial audit took six years to complete and that this was an unreasonable amount of time. The letter didn’t offer any other reasons for the interest abatement, nor did it explain why they decided to ask for an abatement of only 75 percent of the interest charged. The first IRS agent to consider the matter denied the request quickly, but the Nicholses asked the IRS Appeals Office to review that denial, arguing that the acts complained of were “managerial” under section 301.6404-2 of the Procedure and Administration Regulations. The Appeals Office has not yet held a conference to consider their request. Although the Nicholses had not listed either the NOL carryback or the interest abatement issues as reasons to release the lien, the Appeals officer who held the CDP hearing considered the NOL carryback issue and noted in the record that the Nicholses were pursuing interest abatement. In June 2004, that officer tentatively agreed with the Nicholses to allow all the NOLs. In a letter confirming their understanding of this agreement, the Nicholses also asked him to abate all interest andPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011