The Seventh Circuit Court of Appeals decided that the IRS had not abused its discretion in denying an attorney’s request for abatement of interest, reversing the decision of the Tax Court in the case of King v. Commissioner, Case No. 15-2439, CA 7, 2016 TNT 141-12.

The taxpayer in this case had asked for an abatement of interest related to employment tax liabilities after the IRS had initially indicated they would grant him an installment agreement to pay his unpaid payroll taxes, but later determined that he was not eligible for such an agreement. The taxpayer claimed that had he known the IRS would not grant an installment payment plan he would have paid the balance earlier, avoiding the interest from that date until he actually paid the tax.