26 U.S.C. § 6404: Abatements

is excessive in amount, or is assessed after the expiration of the period of limitation properly applicable thereto, or is erroneously or illegally assessed. No claim for abatement shall be filed by a taxpayer in respect of an assessment of any tax imposed under subtitle A or B. 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. 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. 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 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 taxpayer (or a related party) has in any way caused such erroneous refund, or such erroneous refund exceeds $50,000. 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. the written advice was reasonably relied upon by the taxpayer and was in response to a specific written request of the taxpayer, and the portion of the penalty or addition to tax did not result from a failure by the taxpayer to provide adequate or accurate information. the date on which the return is filed; or the due date of the return without regard to extensions, This paragraph shall be applied separately with respect to each item or adjustment. any penalty imposed by section 6651; any interest, penalty, addition to tax, or additional amount in a case involving fraud; any interest, penalty, addition to tax, or additional amount with respect to any tax liability shown on the return; any interest, penalty, addition to tax, or additional amount with respect to any gross misstatement; any interest, penalty, addition to tax, or additional amount with respect to any reportable transaction with respect to which the requirement of section 6664(d)(3)(A) is not met and any listed transaction (as defined in 6707A(c)); or any criminal penalty. beginning on the day after the close of the 36-month period under paragraph (1); and ending on the date which is 21 days after the date on which notice described in paragraph (1)(A) is provided by the Secretary. the date of the mailing of the Secretary’s final determination not to abate such interest, or the date which is 180 days after the date of the filing with the Secretary (in such form as the Secretary may prescribe) of a claim for abatement under this section, and not later than the date which is 180 days after the date described in subparagraph (A)(i). Rules similar to the rules of section 6213 shall apply for purposes of determining the date of the mailing referred to in paragraph (1). Rules similar to the rules of section 6512(b) shall apply for purposes of this subsection. 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. For authority to suspend running of interest, etc. by reason of Presidentially declared disaster or terroristic or military action, see section 7508A. Except as provided in paragraph (2), the amendments made by this section [amending this section] shall apply to taxable years beginning after December 31, 2003 . The amendments made by subsection (c) [amending this section] shall apply with respect to interest accruing after October 3, 2004 . Except as provided in clauses (ii), (iii), and (iv), the amendments made by subsection (c) shall also apply with respect to interest accruing on or before October 3, 2004 . the taxpayer is participating in a settlement initiative described in Internal Revenue Service Announcement 2005–80 with respect to such transaction, or the taxpayer has entered into a settlement agreement pursuant to such an initiative. The Secretary of the Treasury or the Secretary’s delegate may except from the application of clause (i) any transaction in which the taxpayer has acted reasonably and in good faith. the assessment of all Federal income taxes for the taxable year in which the tax liability to which the interest relates arose is prevented by the operation of any law or rule of law, or a closing agreement under section 7121 has been entered into with respect to the tax liability arising in connection with the transaction.” 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 . 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. 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.” 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 . 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.”