§4962 — Abatement of first tier taxes in certain cases

4 cases·3 followed·1 cited75% support

(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”.

4 Citing Cases

FOLLOWED Vincent J. Fumo, Petitioner T.C. Memo. 2025-97 · 2025

9 Section 4962 provides for nonassessment or abatement of the first-tier tax “[i]f it is established to the satisfaction of the Secretary” that the taxable event “was due to reasonable cause and not to willful neglect” and “was corrected within the cor- rection period for such event.” § 4962(a).

FOLLOWED Gloria Ononuju, Petitioner T.C. Memo. 2021-94 · 2021

Respondent determined that 4Somewhat similarly, section 4962 provides for nonassessment or abatement of the first-tier tax in certain circumstances.

Vincent J. Fumo, Petitioner T.C. Memo. 2025-97 · 2026

9 Section 4962 provides for nonassessment or abatement of the first-tier tax “[i]f it is established to the satisfaction of the Secretary” that the taxable event “was due to reasonable cause and not to willful neglect” and “was corrected within the cor- rection period for such event.” § 4962(a). Petitioner has not attempted to rely on this provision

Howell v. Commissioner 77 T.C. 916 · 1981