26Title 26The US tax code, read & explained

26 U.S.C. § 4962

§ 4962. Abatement of first tier taxes in certain cases

182 words · amended 3 times · cited by 1 other sections

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No plain-English explainer yet. Below is the official text. Explainers are being added section by section.

History

Added in 1984 by the Deficit Reduction Act of 1984. Last changed December 29, 2007 by the Public Law 110-172.

Every change, newest first (4)
  1. December 29, 2007Public Law 110-172
  2. August 5, 1997Taxpayer Relief Act of 1997
  3. December 22, 1987Omnibus Budget Reconciliation Act of 1987
  4. July 18, 1984Deficit Reduction Act of 1984 · added this section

The law as written

Current through Public Law 119-102. Amendment notes omitted.

Structure

  1. (a) General rule
  2. (b) Qualified first tier tax
  3. (c) Special rule for tax on political expenditures of section 501(c)(3) organizations
(a) General rule

If it is established to the satisfaction of the Secretary that—

(1)

a taxable event was due to reasonable cause and not to willful neglect, and

(2)

such event was corrected within the correction period for such event,

then any qualified first tier tax imposed with respect to such event (including interest) shall not be assessed and, if assessed, the assessment shall be abated and, if collected, shall be credited or refunded as an overpayment.

(b) Qualified first tier tax

For purposes of this section, the term “qualified first tier tax” means any first tier tax imposed by subchapter A, C, D, or G of this chapter, except that such term shall not include the tax imposed by section 4941(a) (relating to initial tax on self-dealing).

(c) Special rule for tax on political expenditures of section 501(c)(3) organizations

In the case of the tax imposed by section 4955(a), subsection (a)(1) shall be applied by substituting “not willful and flagrant” for “due to reasonable cause and not to willful neglect”.