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20.2.7.1
(08-01-2006)
Interest Abatement and Suspension Overview
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This chapter includes procedures for abatement
or suspension of interest if that interest is:
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erroneously or illegally assessed [IRC section 6404(a)]
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attributable to certain errors or delays by the
IRS [IRC section 6404(e)(1)]
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on an erroneous refund [IRC section 6404(e)(2)]
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due on a deficiency that was not identified by the
IRS in a timely manner [IRC section 6404(g)]
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due on an account for a taxpayer in a combat zone
[IRC section 7508]
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due on an account for a taxpayer located in a declared
disaster area [IRC section 7508A]
Caution:
Reasonable cause is never a basis for abating interest.
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Generally, the term claim relates to items that
have been fully paid, and request for abatement refers
to unpaid, assessed and/or accrued amounts.
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Interest abatement claims should be filed with the campus where the
original return was filed or, if unknown, the campus where the taxpayer last
filed. The campus would obtain the administrative file and determine what
function is at the source of the alleged error or delay and route the file
to the Interest Abatement Coordinator (IAC).
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If an interest abatement claim is received during the examination, contact
the Examination IAC for local procedures to follow.
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Although in many instances the taxpayers are instructed to file requests
for abatement of interest on Form 843, all written requests should be considered.
If necessary information is missing, the claim may be returned informing the
taxpayer that additional information must be submitted before a determination
can be made.
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Contact the IAC regarding any interest abatement requests that are not
addressed in this IRM. A list of Interest Abatement Coordinators and their
contact information can be found on the Office of Penalties & Interest
website http://sbse.web.irs.gov/opi.
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