White v. Comm'r of Internal Revenue
| Decision Date | 05 August 1997 |
| Docket Number | No. 20635–96.,20635–96. |
| Citation | 109 T.C. No. 4,109 T.C. 96 |
| Parties | Marvin L. White and Phyllis WHITE, Petitioners, v. COMMISSIONER OF INTERNAL REVENUE, Respondent. |
| Court | U.S. Tax Court |
OPINION TEXT STARTS HERE
Robert L. White, for petitioners.
Christal Hillstead, for respondent.
This case is before us on respondent's Motion to Dismiss for Lack of Jurisdiction. The issue is whether the Court has jurisdiction pursuant to section 6404(g) to review respondent's determination denying petitioners' claims for abatement of interest. The resolution of this issue turns on the effective date of section 6404(g). Unless otherwise indicated, all section references are to the Internal Revenue Code in effect at the time the petition was filed.
Petitioners are husband and wife who resided in Wenatchee, Washington, at the time the petition was filed.
Following the conclusion of deficiency proceedings, on December 17, 1992, respondent made assessments of deficiencies and additions to tax for the taxable years 1979 through 1984. Petitioners paid $387,429.58, on April 8, 1993, which represented a payment of the assessments indicated as due on their 1979 through 1984 accounts as calculated by a revenue officer who was assigned for collection. It was subsequently determined that additional interest was due. Petitioners contacted an Internal Revenue Service Problem Resolution Office and, on February 25, 1994, that office sent a letter to petitioners that included a computation of interest to March 14, 1994. These computations omitted computations of interest accruing from April 8, 1993, to March 14, 1994.
On December 26, 1994, petitioners filed claims with the Fresno Service Center requesting abatement of interest for the taxable years 1979 through 1984. The Fresno Service Center sent a letter to petitioners denying abatement of the total amount of interest requested in petitioners' claims but in the letter stated that no interest would be charged for the period from March 24, 1993, to March 14, 1994. This letter also advised petitioners of their right to appeal the Service Center's determination to an Internal Revenue Service Appeals Office. Petitioners exercised their appeal rights.
On January 26, 1996, a final determination letter was issued by the Appeals Office stating that petitioners' claims for abatement of interest for the taxable years 1979 through 1984 were disallowed except that interest was abated for the period from March 24, 1993, to March 14, 1994. Shortly thereafter, a computation of the amounts of unabated interest was made by a revenue officer on March 28, 1996, pursuant to petitioners' request.
On September 23, 1996, petitioners filed the petition commencing this case. Therein petitioners request that the Court abate the interest assessed for the taxable years 1980, 1981, and 1983. Attached to the petition is a copy of the revenue officer's letter dated March 28, 1996, including an interest computation. Other attachments include a second letter from a revenue officer dated May 16, 1996, and a letter from an Appeals officer dated November 30, 1995. All of the attachments concern the computation of interest and provide explanations of the amounts of interest previously assessed for the taxable years 1979 through 1984, including the amounts abated for the period from March 24, 1993, to March 14, 1994.
On November 20, 1996, respondent moved to dismiss this case on the ground that petitioners' requests for abatement of interest were submitted to the Internal Revenue Service (IRS) prior to July 31, 1996, and, alternatively, on the ground that the petition was not timely filed within the time prescribed by section 6404(g).
The issue for decision is whether the Court has jurisdiction to review the denial of petitioners' requests for abatement of interest. Resolution of the issue turns on the effective date of section 6404(g), added by section 302(a) of the Taxpayer Bill of Rights 2 (TBOR 2), Pub.L. 104–168, 110 Star. 1452, 1457 (1996). Section 6404(g) authorizes actions in this Court for review of respondent's denial of a request for abatement of interest under section 6404. That section provides, in pertinent part, as follows:
(g) Review of Denial of Request for Abatement of Interest.—
(1) In General.—The Tax Court shall have jurisdiction over any action brought by a taxpayer who meets the requirements referred to in section 7430(c)(4)(A)(ii) to determine whether the Secretary's failure to abate interest under this section was an abuse of discretion, and may order an abatement, if such action is brought within 180 days after the date of the mailing of the Secretary's final determination not to abate such interest.
Section 302(b) of TBOR 2 provides that section 6404(g) “applies to requests for abatement after the date of the enactment of this Act.” TBOR 2 was enacted on July 30, 1996.
Respondent contends that we lack jurisdiction in this case because petitioners submitted their requests for abatement prior to July 31, 1996. According to respondent, the effective date provision of TBOR 2 section 302(b) provides that jurisdiction is only applicable to requests for abatement that are submitted after July 30, 1996. Alternatively, respondent contends that we lack jurisdiction on the ground that the petition was not timely filed within 180 days of the mailing of the final notice disallowing petitioners' claim for abatement of interest.
Petitioners' primary position is that their requests for abatement of interest are...
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Miller v. C.I.R., 00-71285.
...clearly did not apply to requests for abatement made and denied prior to July 31, 1996, citing its decision in White v. Comm'r, 109 T.C. 96, 1997 WL 438057 (1997). Banat, 109 T.C. at 94-95. It reasoned, however, that the purpose of the amendment was to provide increased protection of taxpay......
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Bourekis v. Comm'r of Internal Revenue
...the Court to review the Commissioner's denial of a taxpayer's request to abate an assessment of statutory interest. See White v. Commissioner, 109 T.C. 96 (1997); Banat v. Commissioner, 109 T.C. 92 (1997). Petitioners rely upon section 6404(g) as the basis for the Court's jurisdiction in th......
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Hagadone v. Commissioner
...authorizes us to review denials by the Commissioner of requests for abatement of interest under section 6404. White v. Commissioner [Dec. 52,188], 109 T.C. 96 (1997); Banat v. Commissioner [Dec. 52,187], 109 T.C. 92 (1997); Goettee v. [Dec. 52,289(M)], T.C. Memo. 1997-454. Section 6404(g) p......
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Goettee v. Commissioner
...in its administration of the tax laws." H. Rept. 104-506, at 22 (1996). Banat v. Commissioner, supra at 95. But cf. White v. Commissioner [Dec. 52,188], 109 T.C. 96 (1997) (the Court lacks jurisdiction to review a request for abatement of interest that was both filed and denied prior to Jul......