- 12 -
B. Abatement of Interest Under Section 6404(e)
Section 6404(e)(1) provides that the Secretary may abate the
assessment of interest that accrued as the result of any
unreasonable error or delay by an officer or employee of the
Internal Revenue Service in performing a ministerial or
managerial act. However, section 6404(e)(1) also provides that
“an error or delay shall be taken into account only if no
significant aspect of such error or delay can be attributed to
the taxpayer involved, and after the Internal Revenue Service has
contacted the taxpayer in writing with respect to such deficiency
or payment.”
The Court may order abatement if the Secretary abuses his
discretion by failing to abate interest. Sec. 6404(h)(1). In
order to prevail, a taxpayer must prove the Commissioner
exercised his discretion arbitrarily, capriciously, or without
sound basis in fact or law. Woodral v. Commissioner, 112 T.C.
19, 23 (1999); Nelson v. Commissioner, T.C. Memo. 2004-34.
Petitioners argue that respondent abused his discretion by
failing to abate interest that accrued “due to the Respondent’s
unnecessary delay in resolving the present matter”. Petitioners
assert respondent delayed in returning to them the offer-in-
compromise forms submitted on November 27, 2002, and failed to
meet with petitioners despite several requests to do so.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: November 10, 2007