I’d already reported on Doc Krueger, when Judge Albert G. (“Scholar Al”) Lauber gave the bad news to David J. Matto and Krista M. Matto, T. C. Memo. 2026-60, filed 7/21/26. David J. is also a dentist (hereinafter “Doc Dave”). 

Doc Dave did pay the extra tax three (count ’em, three) years later, but got charged interest for the underpayment he corrected with his 1040-X. His Sub Ss paid wages during the COVID lockdown and qualified for the ERC, which he got three years later. But that means the deduction for the wages paid that qualified him for the ERC had to go, lest he should double-dip, hence the 1040-X for 2020.

Doc Dave’s bœuf is that, while he only got the benefit in 2023, he’s being charged interest for payments he made in good faith in 2020. Appeals denied his abatement of interest claim, so he petitions.

Judge Scholar Al is far too erudite and well-bred to reply “Bummer, dude, that’s how the cookie crumbles.”

You owe tax from when it is due. That the amount is later corrected does not mean the tax wasn’t due. “Petitioners’ Form 1040–X correctly reported an increased amount of tax due for tax year 2020. Underpayment interest began to accrue automatically on May 18, 2021, the day after the due date for their 2020 return. See § 6601(a); Notice 2021-21, 2021-15 I.R.B. 986. Applicable IRS guidance confirmed that point. See Notice 2021-49, 2021-34 I.R.B. 316; see also Notice 2021-20, 2021-11 I.R.B. 922. In their Response to the Motion, petitioners concede that they ‘were required under then-applicable guidance to amend their prior-year [i.e., their 2020] return’ and ‘that the interest accrued as a matter of mathematical operation under I.R.C. §§ 6151(a) and 6601(a).’ An IRS officer does not abuse his discretion when he follows published IRS guidance.” T. C. Memo. 2025-60, at p. 6.

And IRS made neither ministerial (nondiscretionary) or managerial (personnel assignment) miscues. So Section 6404(e) precludes relief.