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Respondent denied petitioners’ request for abatement of
interest in a letter dated March 30, 2004. Respondent stated,
among other things, that no errors or delays were found that
merited the abatement of interest.
Petitioners timely petitioned this Court to review
respondent’s denial of their request for abatement of interest.
OPINION
Section 6404(e)(1) provides that the Commissioner may abate
part or all of an assessment of interest on any deficiency or
payment of income taxes to the extent that the deficiency or any
error or delay in payment is attributable to unreasonable error
or delay by an officer or employee of the IRS in performing a
ministerial or managerial act. Such an error or delay is taken
into account only if it is in no significant aspect attributable
to the taxpayers and only if it occurs after the IRS has
contacted the taxpayers in writing with respect to the deficiency
or payment. Sec. 6404(e)(1). Even if there is an error or
delay, the Commissioner has discretion whether to abate interest.
Mekulsia v. Commissioner, T.C. Memo. 2003-138, affd. 389 F.3d 601
(6th Cir. 2004). Section 6404(e) is intended to apply only “in
instances where failure to abate interest would be widely
perceived as grossly unfair.” H. Rept. 99-426, at 844 (1985),
1986-3 C.B. (Vol. 2) 1, 844.
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Last modified: March 27, 2008