ABATEMENT OF PENALTY FOR FAILURE TO MAKE REQUIRED DEPOSITS OF PAYROLL TAXES IN CERTAIN CASES

Sec. 304. ABATEMENT OF PENALTY FOR FAILURE TO MAKE REQUIRED DEPOSITS OF PAYROLL TAXES IN CERTAIN CASES (a) In general.— Section 6656 (relating to failure to make deposit of taxes) is amended by adding at the end the following new subsections: “(c) Exception for First-Time Depositors of Employment Taxes.— The Secretary may waive the penalty imposed by subsection (a) on a person’s inadvertent failure to deposit any employment tax if— “(1) such person meets the requirements referred to in section 7430(c)(4)(AXiii), “(2) such failure occurs during the 1st quarter that such person was required to deposit any employment tax, and “(3) the return of such tax was filed on or before the due date. For purposes of this subsection, the term ‘employment taxes’ means the taxes imposed by subtitle C. 110 STAT. 1459 “(d) Authority to Abate Penalty Where Deposit Sent to Secretary.— The Secretary may abate the penalty imposed by subsection (a) with respect to the first time a depositor is required to make a deposit if the amount required to be deposited is inadvertently sent to the Secretary instead of to the appropriate government depository.”. (b) Effective Date.— The amendment made by subsection (a) shall apply to deposits required to be made after the date of the enactment of this Act.