Form 8928 excise tax waiver was appropriate

Plain-English summary

Chief Counsel agreed that the IRS should waive an excise tax reported in Part II of Form 8928. The form instructions permit the Secretary to waive some or all of that tax when payment would be excessive relative to the failure involved. A waiver is available only when the failure resulted from reasonable cause rather than willful neglect. The advice concluded, without disclosing the underlying facts, that a waiver was appropriate under the circumstances.

Ruling snapshot

• Question: Should the excise tax reported in Part II of Form 8928 be waived?
• Outcome: Advice given that the waiver should be granted.
• Key authorities: Form 8928, Part II and its instructions; IRC § 4980D.

Full text (IRS public release)

ID:         CCA_2016060711402206
UILC:       9999.00-00

Number: 201637014
Release Date: 9/9/2016
From:
Sent: Tuesday, June 07, 2016 11:40:22 AM
To:
Cc:
Bcc:
Subject: Form 8928 Referrals


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As we discussed during our phone call on June 3, 2016 concerning --------------, we agree with
granting the waiver of the excise tax under Part II of the Form 8928.

The Form 8928 instructions (page 4) provide that the Secretary may waive part or all of the
excise tax under Part II, to the extent that payment of the tax would be excessive relative to the
failure involved. This only applies to failures due to reasonable cause and not due to willful
neglect. We believe the waiver is appropriate under the circumstances involved in this matter.

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