Amended 1987
- 1987 Pub. L. 100-203 Pub. L. 100–203, § 10712(b)(4), struck out “private foundation” before “first tier taxes” in section catchline.
(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
“Reasonable” implies facts and circumstances. No regulation cites this provision (eCFR, Oct 19, 2026)
Cited by 1
(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.
Amended 1987
- 1987 Pub. L. 100-203 Pub. L. 100–203, § 10712(b)(2), substituted “any qualified first tier tax” for “any private foundation first tier tax” in closing provisions.
(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).
Amended 1987, 1997, 2007
- 2007 Pub. L. 110-172 Pub. L. 110–172 substituted “D, or G” for “or D”.
- 1997 Pub. L. 105-34 Pub. L. 105–34 substituted “subchapter A, C, or D” for “subchapter A or C”.
- 1987 Pub. L. 100-203 Pub. L. 100–203, § 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).”
(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”.
Amended 1987
- 1987 Pub. L. 100-203 Pub. L. 100–203, § 10712(b)(1), added subsec. (c).