Case: Interest Abatement Denied When Reviewing Litigation Not Ministerial Act (5th Cir.) (IRC §6404)

Disallowance of interest abatement was not an abuse of discretion, the Fifth Circuit Court of Appeals held in affirming the Tax Court. Taxpayer failed to report the sale of his business on his tax return. While Taxpayer was eventually charged and tried in a criminal proceeding, which ultimately resulted in no conviction, but did warrant civil deficiency proceedings. Taxpayer filed a petition with the Tax Court requesting abatement of interest on the deficiency after the IRS denied his original request. Taxpayer argued that his tax interest is subject to abatement because of the lapse in time in which various IRS ...