
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC4962]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                 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
 
Sec. 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, or D 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''.

(Added Pub. L. 98-369, div. A, title III, Sec. 305(a), July 18, 1984, 98 
Stat. 783; amended Pub. L. 100-203, title X, Sec. 10712(b)(1), (2), (4), 
Dec. 22, 1987, 101 Stat. 1330-467; Pub. L. 105-34, title XVI, 
Sec. 1603(a), Aug. 5, 1997, 111 Stat. 1096.)


                            Prior Provisions

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


                               Amendments

    1997--Subsec. (b). Pub. L. 105-34 substituted ``subchapter A, C, or 
D'' for ``subchapter A or C''.
    1987--Pub. L. 100-203, Sec. 10712(b)(4), struck out ``private 
foundation'' before ``first tier taxes'' in section catchline.
    Subsec. (a). Pub. L. 100-203, Sec. 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, Sec. 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, Sec. 10712(b)(1), added subsec. (c).


                    Effective Date of 1997 Amendment

    Section 1603(c) of Pub. L. 105-34 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 Amendment

    Amendment 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

    Section 305(c) of Pub. L. 98-369 provided that: ``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 December 31, 
1984.''

                  Section Referred to in Other Sections

    This section is referred to in section 6033 of this title.
