Reg. § 301.6656-1 Abatement of penalty.
(a) Exception for first time depositors of employment taxes
(1) Waiver The Secretary will generally waive the penalty imposed by section on a person's failure to deposit any employment tax under subtitle C of the Internal Revenue Code if—
(i) The failure is inadvertent;
(ii) The person meets the requirements referred to in section (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.
(2) Inadvertent failure For purposes of of this section, the Secretary will determine if a failure to deposit is inadvertent based on all the facts and circumstances.
(b) Deposit sent to Secretary The Secretary may abate the penalty imposed by section 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 39118, July 22, 1997. Redesignated by T.D. 8947, 66 FR 32542, June 15, 2001; T.D. 9507, 75 FR 75904, Dec. 7, 2010]