Sec. 301.6656-1 Abatement of penalty.
Exception for first time depositors of employment taxes
Waiver.
The Secretary will generally waive the penalty imposed by section 6656(a) on a person's failure to deposit any employment tax under subtitle C of the Internal Revenue Code if--
The failure is inadvertent;
(ii) The person meets the requirements referred to in section 7430(c)(4)(A)(ii) (relating to the net worth requirements applicable for awards of attorney's fees);
(iii) The failure occurs during the first quarter that the person is required to deposit any employment tax; and
(iv) The return of the tax is filed on or before the due date.
Inadvertent failure.
For purposes of paragraph (a)(1)(i) of this section, the Secretary will determine if a failure to deposit is inadvertent based on all the facts and circumstances.
Deposit sent to Secretary.
The Secretary may abate the penalty imposed by section 6656(a) if the first time a taxpayer is required to make a deposit, the amount required to be deposited is inadvertently sent to the Secretary rather than deposited by electronic funds transfer.
(c) Effective/applicability date.
This section applies to deposits and payments made after December 31, 2010.
[
T.D. 8725, 62 FR 39115-39119, July 22, 1997. Redesignated from Sec. 301.6656-3 by
T.D. 8947, 66 FR 32541-32543, June 15, 2001, and amended by
T.D. 9507, 75 FR 75897-75904, Dec. 7, 2010.]
Editor's Note: Former reg. section 301.6656-1, adopted by T.D. 6268, 22 FR 9143, Nov. 16, 1957, amended by T.D. 6498, 25 FR 10154, Oct. 25, 1960; T.D. 6585, 26 FR 12553, Dec. 28, 1961; T.D. 6922, 32 FR 8711-8714, June 17, 1967, revised at 32 FR 15241, Nov. 3, 1967, and amended by T.D. 7133, 36 FR 13594, July 22, 1971, was removed by T.D. 8947, 66 FR 32541-32543, June 15, 2001.