Public Law 119-73 (01/23/2026)

26 U.S.C. § 4962

Abatement of first tier taxes in certain cases

(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”.

Pub. L. 98–369, div. A, title III, § 305(a)98 Stat. 783Pub. L. 100–203, title X, § 10712(b)(1)101 Stat. 1330–467Pub. L. 105–34, title XVI, § 1603(a)111 Stat. 1096Pub. L. 110–172, § 3(h)121 Stat. 2475(Added , , ; amended , (2), (4), , ; , , ; , , .)

Editorial Notes

Prior Provisions

section 4963 of this titleA prior section 4962 was renumbered .

Amendments

Pub. L. 110–1722007—Subsec. (b). substituted “D, or G” for “or D”.

Pub. L. 105–341997—Subsec. (b). substituted “subchapter A, C, or D” for “subchapter A or C”.

Pub. L. 100–203, § 10712(b)(4)1987—, struck out “private foundation” before “first tier taxes” in section catchline.

Pub. L. 100–203, § 10712(b)(2)Subsec. (a). , substituted “any qualified first tier tax” for “any private foundation first tier tax” in closing provisions.

Pub. L. 100–203, § 10712(b)(1)Subsec. (b). , 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).”

Pub. L. 100–203, § 10712(b)(1)Subsec. (c). , added subsec. (c).

Statutory Notes and Related Subsidiaries

Effective Date of 2007 Amendment

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

Effective Date of 1997 Amendment

Pub. L. 105–34, title XVI, § 1603(c)111 Stat. 1097

section 6033 of this titlePub. L. 104–168“The amendments made by this section [amending this section and ] shall take effect as if included in the provisions of the Taxpayer Bill of Rights 2 [] to which such amendments relate.”
, , , provided that:

Effective Date of 1987 Amendment

Pub. L. 100–203section 10712(d) of Pub. L. 100–203section 4955 of this titleAmendment by applicable to taxable years beginning after , see , set out as an Effective Date note under .

Effective Date

Pub. L. 98–369, div. A, title III, § 305(c)98 Stat. 784

“The amendments made by this section [enacting this section, redesignating former section 4962 as 4963, and amending sections 4942, 6213, and 6503 of this title] shall apply to taxable events occurring after .”
, , , provided that: