                        T.C. Memo. 2003-283



                      UNITED STATES TAX COURT



                  JACKIE H. HUNT, Petitioner v.
          COMMISSIONER OF INTERNAL REVENUE, Respondent



     Docket No. 5681-02.             Filed October 2, 2003.


     Hugh O. Mussina, for petitioner.

     Audrey M. Morris, for respondent.



                        MEMORANDUM OPINION


     GOEKE, Judge:   On September 18, 2001, respondent issued a

notice of final determination disallowing petitioner’s claim for

abatement of interest on income tax liabilities for 1982.

Petitioner timely filed a petition with this Court on March 11,

2002, for review of respondent’s failure to abate interest.   The

issue for decision is whether petitioner is entitled to an
                                - 2 -

abatement of interest under section 6404(g).1   We hold that

section 6404(g) does not apply.

Background

     The parties submitted this case fully stipulated.    The

stipulation of facts and the attached exhibits are incorporated

herein by this reference.   Petitioner resided in Mason, Texas, at

the time she filed her petition.

     On her 1982 Federal income tax return, petitioner claimed a

$23,174 loss from Yuma Mesa Jojoba, Ltd. (the partnership).     This

Court in Cactus Wren Jojoba, Ltd. v. Commissioner, T.C. Memo.

1997-504, filed November 10, 1997, upheld the Commissioner’s

determination denying research and experimental deductions of

$1,298,031 taken by the partnership for 1982.   On October 13,

1998, petitioner’s claimed loss was disallowed in a tax

calculation which was made pursuant to the partnership level

proceedings, resulting in a deficiency in her 1982 Federal income

tax of $11,587.   On December 18, 1998, respondent issued a

statutory notice of deficiency to petitioner for the taxable year

1982, determining additions to tax pursuant to sections

6653(a)(1) and (2), and 6661.   On December 31, 1998, petitioner

filed a claim for abatement of the interest with respect to the

deficiency determination.   On August 16, 1999, petitioner paid

the $11,587 deficiency.

     1
       Unless otherwise indicated, all section references are to
the Internal Revenue Code.
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     Petitioner challenged the imposition of the additions to tax

to this Court.     On January 25, 2001, the Court in an opinion

sustained the Commissioner’s determination with respect to the

additions to tax.     Hunt v. Commissioner, T.C. Memo. 2001-15.

     On September 18, 2001, respondent issued a notice of final

determination disallowing petitioner’s claim for interest

abatement for 1982.     Petitioner filed a timely petition and an

amended petition for review of respondent’s failure to abate

interest.

Discussion

         Where the Commissioner abuses his discretion in failing to

abate interest under section 6404, this Court may order

abatement.     Sec. 6404(h)(1).   In order to prevail, a taxpayer

must prove that the Commissioner exercised this discretion

arbitrarily, capriciously, or without sound basis in fact or law.

Woodral v. Commissioner, 112 T.C. 19, 23 (1999).      In her

petitions, petitioner’s only allegation is that respondent abused

his discretion by failing to apply section 6404(g).

     In her petitions and on brief, petitioner relies solely on

section 6404(g)(1).2    Section 6404(g) was added to the Code by


     2
       Sec. 6404(g)(1) requires the suspension of interest if the
taxpayer timely files a return and the Secretary fails to notify
the taxpayer of the liability and a basis for the liability
before 1 year (18 months with respect to taxable years beginning
after July 22, 1998, and before Jan. 1, 2004) from the later of
(1) the date on which the return is filed, or (2) the due date of
                                                   (continued...)
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section 3305(a) of the Internal Revenue Service Restructuring and

Reform Act of 1998 (RRA 1998), Pub. L. 105-206, 112 Stat. 685,

743.       Pursuant to RRA 1998, section 6404(g) is effective only for

tax years ending after July 22, 1998.          Nerad v. Commissioner,

T.C. Memo 1999-376.       Consequently, section 6404(g)(1) does not

apply because petitioner is seeking an abatement of interest on

her income tax liabilities for the taxable year 1982.3

       Petitioner expressly states on brief that she is not seeking

relief under any subsection other than section 6404(g).         She

raises no other issues, and has presented no other facts or

evidence to establish that she is entitled to interest abatement

if section 6404(g) does not apply.         Based on the foregoing, we

hold that petitioner is not entitled to an abatement of interest

on the deficiency in income tax for 1982.




                                                Decision will be entered

                                           for respondent.




       2
      (...continued)
the return without regard to extensions.
       3
       Since sec. 6404 was enacted, various subsections have been
redesignated. Petitioner mistakenly relies on effective date
language relating to current sec. 6404(h), not sec. 6404(g). As
explained above, sec. 6404(g) is only effective for tax years
ending after July 22, 1998.
