Section 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 6656(a) 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 7430(c)(4)(A)(ii) (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 paragraph (a)(1)(i) 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 6656(a) 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