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evidence of reasonable cause and lack of willful neglect for his
failure to pay timely.
Petitioner’s liability for interest is due to an
underpayment of tax shown on his return and not to an assessment
of interest attributable to a “deficiency”. See secs. 6211,
6404(e)(1)(a). Taxpayers are allowed an abatement of assessed
interest on a payment of tax described in section 6212 to the
extent certain types of errors or delays in payment are
attributable to an officer or employee of the IRS. Sec.
6404(e)(1). Such an error or delay shall only be taken into
account, however, if no significant aspect of the error or delay
is attributable to the taxpayer and the delay was after the IRS
contacted the taxpayer in writing. Sec. 6404(e).
Further, the conference committee report for the Tax Reform
Act of 1986, Pub. L. 99-514, 100 Stat. 2085, states that if a
taxpayer files a return but does not pay the taxes due, section
6404(e) would not permit abatement of interest regardless of how
long the IRS took to contact the taxpayer and request payment.
See Downing v. Commissioner, 118 T.C. 22, 30-31 (2002); H. Conf.
Rept. 99-841 (Vol. II), at II-811 (1986), 1986-3 C.B. (Vol. 4) 1,
811. Therefore, if a taxpayer fails to file a return and fails
to pay the tax owed, section 6404(e)(1) does not apply to the
interest that accrues on the unpaid tax before the Commissioner
contacts the taxpayer in writing with respect to the tax. Id.
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Last modified: November 10, 2007