There\'s a vary narrow window when interest can be abated. Specifically, interes

Question

There's a vary narrow window when interest can be abated. Specifically, interest can be abated if (1) there in an unreasonable delay by the IRS, (2) that occurs after the IRS contacts the taxpayer in writing, (3) with respect to an adjustment on a taxpayer's return or a flow-through adjustment from a TEFRA partnership return. The error must (5) stem from a ministerial act, and (6) no significant aspect of the error or delay is attributable to the taxpayer. Has anyone encountered this provision in their work? What do you think of this provision? Other than the abatement allowed with respect to interest on an erroneous refund that is to be repaid, the IRC has no other abatement provisions for interest. Are there other instances when you think the IRS should abate interest?

Explanation / Answer

IRS

Internal Revenue Service is a U.S Agency that deals with the collection of tax from taxpayers as well as implementing tax laws.

I strongly support this provision because there are so many reasonable situations where the taxpayer is not able to pay the correct tax within the stipulated time period, not because of the mistake from his part but because of the mistake from the IRS agency so this provision will good to avoid the unnecessary payment of interest.

Beyond the above-explained situation, there is one more situation in which the IRS team will abate the interest that is,

If the interest is directly related to a penalty when IRS Abate penality the interest related to such penalty will also get abated. For no reasonable causes from the taxpayer, the IRS will abate interest because the interest is charged by law.  

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