
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document affected by Public Law 107-134 Section 112(d)(1)]
[CITE: 26USC6404]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                Subtitle F--Procedure and Administration
 
              CHAPTER 65--ABATEMENTS, CREDITS, AND REFUNDS
 
                   Subchapter A--Procedure in General
 
Sec. 6404. Abatements


(a) General rule

    The Secretary is authorized to abate the unpaid portion of the 
assessment of any tax or any liability in respect thereof, which--
        (1) is excessive in amount, or
        (2) is assessed after the expiration of the period of limitation 
    properly applicable thereto, or
        (3) is erroneously or illegally assessed.

(b) No claim for abatement of income, estate, and gift taxes

    No claim for abatement shall be filed by a taxpayer in respect of 
any assessment of any tax imposed under subtitle A or B.

(c) Small tax balances

    The Secretary is authorized to abate the unpaid portion of the 
assessment of any tax, or any liability in respect thereof, if the 
Secretary determines under uniform rules prescribed by the Secretary 
that the administration and collection costs involved would not warrant 
collection of the amount due.

(d) Assessments attributable to certain mathematical errors by Internal 
        Revenue Service

    In the case of an assessment of any tax imposed by chapter 1 
attributable in whole or in part to a mathematical error described in 
section 6213(g)(2)(A), if the return was prepared by an officer or 
employee of the Internal Revenue Service acting in his official capacity 
to provide assistance to taxpayers in the preparation of income tax 
returns, the Secretary is authorized to abate the assessment of all or 
any part of any interest on such deficiency for any period ending on or 
before the 30th day following the date of notice and demand by the 
Secretary for payment of the deficiency.

(e) Abatement of interest attributable to unreasonable errors and delays 
        by Internal Revenue Service

                           (1) In general

        In the case of any assessment of interest on--
            (A) any deficiency attributable in whole or in part to any 
        unreasonable error or delay by an officer or employee of the 
        Internal Revenue Service (acting in his official capacity) in 
        performing a ministerial or managerial act, or
            (B) any payment of any tax described in section 6212(a) to 
        the extent that any unreasonable error or delay in such payment 
        is attributable to such an officer or employee being erroneous 
        or dilatory in performing a ministerial or managerial act,

    the Secretary may abate the assessment of all or any part of such 
    interest for any period. For purposes of the preceding sentence, an 
    error or delay shall be taken into account only if no significant 
    aspect of such error or delay can be attributed to the taxpayer 
    involved, and after the Internal Revenue Service has contacted the 
    taxpayer in writing with respect to such deficiency or payment.

     (2) Interest abated with respect to erroneous refund check

        The Secretary shall abate the assessment of all interest on any 
    erroneous refund under section 6602 until the date demand for 
    repayment is made, unless--
            (A) the taxpayer (or a related party) has in any way caused 
        such erroneous refund, or
            (B) such erroneous refund exceeds $50,000.

(f) Abatement of any penalty or addition to tax attributable to 
        erroneous written advice by the Internal Revenue Service

                           (1) In general

        The Secretary shall abate any portion of any penalty or addition 
    to tax attributable to erroneous advice furnished to the taxpayer in 
    writing by an officer or employee of the Internal Revenue Service, 
    acting in such officer's or employee's official capacity.

                           (2) Limitations

        Paragraph (1) shall apply only if--
            (A) the written advice was reasonably relied upon by the 
        taxpayer and was in response to a specific written request of 
        the taxpayer, and
            (B) the portion of the penalty or addition to tax did not 
        result from a failure by the taxpayer to provide adequate or 
        accurate information.

                       (3) Initial regulations

        Within 180 days after the date of the enactment of this 
    subsection, the Secretary shall prescribe such initial regulations 
    as may be necessary to carry out this subsection.

(g) Suspension of interest and certain penalties where Secretary fails 
        to contact taxpayer

                           (1) Suspension

        (A) In general

            In the case of an individual who files a return of tax 
        imposed by subtitle A for a taxable year on or before the due 
        date for the return (including extensions), if the Secretary 
        does not provide a notice to the taxpayer specifically stating 
        the taxpayer's liability and the basis for the liability before 
        the close of the 1-year period (18-month period in the case of 
        taxable years beginning before January 1, 2004) beginning on the 
        later of--
                (i) the date on which the return is filed; or
                (ii) the due date of the return without regard to 
            extensions,

        the Secretary shall suspend the imposition of any interest, 
        penalty, addition to tax, or additional amount with respect to 
        any failure relating to the return which is computed by 
        reference to the period of time the failure continues to exist 
        and which is properly allocable to the suspension period.

        (B) Separate application

            This paragraph shall be applied separately with respect to 
        each item or adjustment.

                           (2) Exceptions

        Paragraph (1) shall not apply to--
            (A) any penalty imposed by section 6651;
            (B) any interest, penalty, addition to tax, or additional 
        amount in a case involving fraud;
            (C) any interest, penalty, addition to tax, or additional 
        amount with respect to any tax liability shown on the return; or
            (D) any criminal penalty.

                        (3) Suspension period

        For purposes of this subsection, the term ``suspension period'' 
    means the period--
            (A) beginning on the day after the close of the 1-year 
        period (18-month period in the case of taxable years beginning 
        before January 1, 2004) under paragraph (1); and
            (B) ending on the date which is 21 days after the date on 
        which notice described in paragraph (1)(A) is provided by the 
        Secretary.

(h) Abatement of interest on underpayments by taxpayers in 
        Presidentially declared disaster areas

                           (1) In general

        If the Secretary extends for any period the time for filing 
    income tax returns under section 6081 and the time for paying income 
    tax with respect to such returns under section 6161 for any taxpayer 
    located in a Presidentially declared disaster area, the Secretary 
    shall abate for such period the assessment of any interest 
    prescribed under section 6601 on such income tax.

              (2) Presidentially declared disaster area

        For purposes of paragraph (1), the term ``Presidentially 
    declared disaster area'' means, with respect to any taxpayer, any 
    area which the President has determined warrants assistance by the 
    Federal Government under the Robert T. Stafford Disaster Relief and 
    Emergency Assistance Act.

(i) Review of denial of request for abatement of interest

                           (1) In general

        The Tax Court shall have jurisdiction over any action brought by 
    a taxpayer who meets the requirements referred to in section 
    7430(c)(4)(A)(ii) to determine whether the Secretary's failure to 
    abate interest under this section was an abuse of discretion, and 
    may order an abatement, if such action is brought within 180 days 
    after the date of the mailing of the Secretary's final determination 
    not to abate such interest.

                          (2) Special rules

        (A) Date of mailing

            Rules similar to the rules of section 6213 shall apply for 
        purposes of determining the date of the mailing referred to in 
        paragraph (1).

        (B) Relief

            Rules similar to the rules of section 6512(b) shall apply 
        for purposes of this subsection.

        (C) Review

            An order of the Tax Court under this subsection shall be 
        reviewable in the same manner as a decision of the Tax Court, 
        but only with respect to the matters determined in such order.

(Aug. 16, 1954, ch. 736, 68A Stat. 792; Pub. L. 94-455, title XII, 
Sec. 1212(a), title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 
1712, 1834; Pub. L. 96-589, Sec. 6(b)(2), Dec. 24, 1980, 94 Stat. 3407; 
Pub. L. 99-514, title XV, Sec. 1563(a), Oct. 22, 1986, 100 Stat. 2762; 
Pub. L. 100-647, title I, Sec. 1015(n), title VI, Sec. 6229(a), Nov. 10, 
1988, 102 Stat. 3572, 3733; Pub. L. 104-168, title III, Secs. 301(a), 
(b), 302(a), title VII, Sec. 701(c)(3), July 30, 1996, 110 Stat. 1457, 
1464; Pub. L. 105-206, title III, Secs. 3305(a), 3309(a), July 22, 1998, 
112 Stat. 743, 745; Pub. L. 105-277, div. J, title IV, Sec. 4003(e)(2), 
Oct. 21, 1998, 112 Stat. 2681-909.)

                       References in Text

    The date of the enactment of this subsection, referred to in subsec. 
(f)(3), is the date of enactment of Pub. L. 100-647, which was approved 
Nov. 10, 1988.
    The Robert T. Stafford Disaster Relief and Emergency Assistance Act, 
referred to in subsec. (h)(2), is Pub. L. 93-288, May 22, 1974, 88 Stat. 
143, as amended, which is classified principally to chapter 68 
(Sec. 5121 et seq.) of Title 42, The Public Health and Welfare. For 
complete classification of this Act to the Code, see Short Title note 
set out under section 5121 of Title 42 and Tables.


                               Amendments

    1998--Subsec. (g). Pub. L. 105-206, Sec. 3305(a), added subsec. (g). 
Former subsec. (g) redesignated (h).
    Subsec. (h). Pub. L. 105-206, Sec. 3309(a), added subsec. (h). 
Former subsec. (h) redesignated (i).
    Pub. L. 105-206, Sec. 3305(a), redesignated subsec. (g) as (h).
    Subsec. (h)(2). Pub. L. 105-277 inserted ``Robert T. Stafford'' 
before ``Disaster''.
    Subsec. (i). Pub. L. 105-206, Sec. 3309(a), redesignated subsec. (h) 
as (i).
    1996--Subsec. (e). Pub. L. 104-168, Sec. 301(b), substituted 
``Abatement of interest attributable to unreasonable errors'' for 
``Assessments of interest attributable to errors'' in heading.
    Subsec. (e)(1)(A), (B). Pub. L. 104-168, Sec. 301(a), inserted 
``unreasonable'' before ``error'' and substituted ``in performing a 
ministerial or managerial act'' for ``in performing a ministerial act''.
    Subsec. (g). Pub. L. 104-168, Sec. 302(a), added subsec. (g).
    Subsec. (g)(1). Pub. L. 104-168, Sec. 701(c)(3), substituted 
``section 7430(c)(4)(A)(ii)'' for ``section 7430(c)(4)(A)(iii)''.
    1988--Subsec. (e)(1)(B). Pub. L. 100-647, Sec. 1015(n), inserted 
``error or'' before ``delay'' and ``erroneous or'' before ``dilatory''.
    Subsec. (f). Pub. L. 100-647, Sec. 6229(a), added subsec. (f).
    1986--Subsec. (e). Pub. L. 99-514 added subsec. (e).
    1980--Subsec. (d). Pub. L. 96-589 substituted ``section 
6213(g)(2)(A)'' for ``section 6213(f)(2)(A)''.
    1976--Subsecs. (a), (c). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck 
out ``or his delegate'' after ``Secretary'' wherever appearing.
    Subsec. (d). Pub. L. 94-455, Sec. 1212(a), added subsec. (d).


                    Effective Date of 1998 Amendments

    Amendment by Pub. L. 105-277 effective as if included in the 
provision of the Taxpayer Relief Act of 1997, Pub. L. 105-34, to which 
such amendment relates, see section 4003(l) of Pub. L. 105-277, set out 
as a note under section 86 of this title.
    Pub. L. 105-206, title III, Sec. 3305(b), July 22, 1998, 112 Stat. 
743, provided that: ``The amendments made by this section [amending this 
section] shall apply to taxable years ending after the date of the 
enactment of this Act [July 22, 1998].''
    Pub. L. 105-206, title III, Sec. 3309(b), (c), July 22, 1998, 112 
Stat. 745, provided that:
    ``(b) Effective Date.--The amendment made by this section [amending 
this section] shall apply to disasters declared after December 31, 1997, 
with respect to taxable years beginning after December 31, 1997.
    ``(c) Emergency Designation.--
        ``(1) For the purposes of section 252(e) of the Balanced Budget 
    and Emergency Deficit Control Act [2 U.S.C. 902(e)], Congress 
    designates the provisions of this section as an emergency 
    requirement.
        ``(2) The amendments made by subsections (a) and (b) of this 
    section [amending this section] shall only take effect upon the 
    transmittal by the President to the Congress of a message 
    designating the provisions of subsections (a) and (b) as an 
    emergency requirement pursuant to section 252(e) of the Balanced 
    Budget and Emergency Deficit Control Act.''
    [For message of the President dated July 22, 1998, designating the 
provisions of section 3309(a), (b) of Pub. L. 105-206 as an emergency 
requirement pursuant to section 252(e) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 on July 22, 1998, see Cong. Rec., 
vol. 144, p. H6160, Daily Issue.]


                    Effective Date of 1996 Amendment

    Section 301(c) of Pub. L. 104-168 provided that: ``The amendments 
made by this section [amending this section] shall apply to interest 
accruing with respect to deficiencies or payments for taxable years 
beginning after the date of the enactment of this Act [July 30, 1996].''
    Section 302(b) of Pub. L. 104-168 provided that: ``The amendment 
made by this section [amending this section] shall apply to requests for 
abatement after the date of the enactment of this Act [July 30, 1996].''
    Section 701(d) of Pub. L. 104-168 provided that: ``The amendments 
made by this section [amending this section and sections 6656 and 7430 
of this title] shall apply in the case of proceedings commenced after 
the date of the enactment of this Act [July 30, 1996].''


                    Effective Date of 1988 Amendment

    Amendment by section 1015(n) of Pub. L. 100-647 effective, except as 
otherwise provided, as if included in the provision of the Tax Reform 
Act of 1986, Pub. L. 99-514, to which such amendment relates, see 
section 1019(a) of Pub. L. 100-647, set out as a note under section 1 of 
this title.
    Section 6229(b) of Pub. L. 100-647 provided that: ``The amendment 
made by subsection (a) [amending this section] shall apply with respect 
to advice requested on or after January 1, 1989.''


                    Effective Date of 1986 Amendment

    Section 1563(b) of Pub. L. 99-514 provided that:
    ``(1) In general.--The amendment made by subsection (a) [amending 
this section] shall apply to interest accruing with respect to 
deficiencies or payments for taxable years beginning after December 31, 
1978.
    ``(2) Statute of limitations.--If refund or credit of any amount 
resulting from the application of the amendment made by subsection (a) 
is prevented at any time before the close of the date which is 1 year 
after the date of the enactment of this Act [Oct. 22, 1986] by the 
operation of any law or rule of law (including res judicata), refund or 
credit of such amount (to the extent attributable to the application of 
the amendment made by subsection (a)) may, nevertheless, be made or 
allowed if claim therefore [sic] is filed before the close of such 1-
year period.''


                    Effective Date of 1980 Amendment

    Amendment by Pub. L. 96-589 effective on Oct. 1, 1979, but not 
applicable to proceedings under Title 11, Bankruptcy, commenced before 
Oct. 1, 1979, see section 7(e) of Pub. L. 96-589, set out as a note 
under section 108 of this title.


                    Effective Date of 1976 Amendment

    Section 1212(b) of Pub. L. 94-455 provided that: ``The amendment 
made by subsection (a) [amending this section] shall apply with respect 
to returns filed for taxable years ending after the date of enactment of 
this Act [Oct. 4, 1976].''

                  Section Referred to in Other Sections

    This section is referred to in sections 6213, 6230 of this title.
