§4962 — Title 26 Internal Revenue Code | U.S. Code

Summary

A tax official can cancel or reduce certain first‑tier taxes if a person proves the taxable event happened because of reasonable cause, not because they purposely ignored the rules, and the problem was fixed within the allowed correction period. Qualified first‑tier tax — first‑tier taxes under subchapters A, C, D, or G, but not the tax in section 4941(a). For the tax in section 4955(a), the rule requires showing the act was not deliberate and obvious instead of showing reasonable cause.

Title 26, §4962

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(a)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,

(b)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)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”.

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 4962 was renumbered section 4963 of this title.

Amendments

2007—Subsec. (b). Pub. L. 110–172 substituted “D, or G” for “or D”. 1997—Subsec. (b). Pub. L. 105–34 substituted “subchapter A, C, or D” for “subchapter A or C”. 1987—Pub. L. 100–203, § 10712(b)(4), struck out “private foundation” before “first tier taxes” in section catchline. Subsec. (a). Pub. L. 100–203, § 10712(b)(2), substituted “any qualified first tier tax” for “any private foundation first tier tax” in closing provisions. Subsec. (b). Pub. L. 100–203, § 10712(b)(1), added subsec. (b) and struck out former subsec. (b) “Private foundation first tier tax” which read as follows: “For purposes of this section, the term ‘private foundation first tier tax’ means any first tier tax imposed by subchapter A of chapter 42, except that such term shall not include the tax imposed by section 4941(a) (relating to initial tax on self-dealing).” Subsec. (c). Pub. L. 100–203, § 10712(b)(1), added subsec. (c).

Statutory Notes and Related Subsidiaries

Effective Date

of 2007 AmendmentAmendment by Pub. L. 110–172 effective as if included in the provisions of the Pension Protection Act of 2006, Pub. L. 109–280, to which such amendment relates, see section 3(j) of Pub. L. 110–172, set out as a note under section 170 of this title.

Effective Date

of 1997 Amendment Pub. L. 105–34, title XVI, § 1603(c), Aug. 5, 1997, 111 Stat. 1097, provided that: “The

Amendments

made by this section [amending this section and section 6033 of this title] shall take effect as if included in the provisions of the Taxpayer Bill of Rights 2 [Pub. L. 104–168] to which such

Amendments

relate.”

Effective Date

of 1987 AmendmentAmendment by Pub. L. 100–203 applicable to taxable years beginning after Dec. 22, 1987, see section 10712(d) of Pub. L. 100–203, set out as an

Effective Date

note under section 4955 of this title.

Effective Date

Pub. L. 98–369, div. A, title III, § 305(c), July 18, 1984, 98 Stat. 784, provided that: “The

Amendments

made by this section [enacting this section, redesignating former section 4962 as 4963, and amending section 4942, 6213, and 6503 of this title] shall apply to taxable events occurring after December 31, 1984.”

§4962 Abatement of first tier taxes in certain cases

Summary

Title 26, §4962

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Amendments

Amendments

Effective Date

Effective Date

Effective Date

Amendments

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