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Title 26, Internal Revenue CodeRelease 119-110

§4962 Abatement of First Tier Taxes in Certain Cases

Title 26 › Subtitle D — Miscellaneous Excise Taxes › CHAPTER 42 — PRIVATE FOUNDATIONS; AND CERTAIN OTHER TAX-EXEMPT ORGANIZATIONS › Subchapter E — Abatement of First and Second Tier Taxes in Certain Cases › § 4962

Last updated Sep 22, 2026|Official source

Summary

If the Secretary is convinced a tax mistake happened for a reasonable reason and not because someone ignored the rules, and the mistake was fixed within the allowed correction period, the related first-tier tax and any interest will not be charged. If the tax was already charged, it will be canceled. If it was already paid, the money will be refunded or credited. Qualified first-tier tax means any first-tier tax from subchapters A, C, D, or G, except the tax in section 4941(a). For the tax on political spending by 501(c)(3) groups (section 4955(a)), the rule uses the test “not willful and flagrant” instead of the reasonable-cause test.

Full Legal Text

Title 26, §4962

Internal Revenue Code, Source: USLM XML via OLRC

(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”.

Legislative History

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.”

Reference

Citations & Metadata

Citation

26 U.S.C. § 4962

Title 26, Internal Revenue Code

Last Updated

Sep 22, 2026

Release point: 119-110