William and Helen Woodral v. Commissioner of Internal Revenue

Summary

The Tax Court sustained the Commissioner's denial of petitioners' request to abate interest assessed on Woody's Transport's 1988 employment taxes. Construing section 6404(g) by its plain language, the Court held it has jurisdiction to review failures to abate interest under all subsections of section 6404, including section 6404(a), rejecting the Commissioner's argument that legislative history limited review to section 6404(e) claims. On the merits, the Court found no abuse of discretion under section 6404(a) because the interest was neither excessive in amount nor assessed after the limitations period nor erroneously or illegally assessed, and petitioners offered no supporting authority or evidence. It further held that section 6404(e)(1) gives the Commissioner no authority to abate interest on employment taxes, since it reaches only deficiencies and payments described in sections 6211 and 6212(a), which exclude subtitle C employment taxes; decision was therefore entered for respondent.