26 CFR §301.6656-1

1. (a)Exception for first time depositors of employment taxes
   1. (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—
      1. (i)The failure is inadvertent;
      2. (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);
      3. (iii)The failure occurs during the first quarter that the person is required to deposit any employment tax; and
      4. (iv)The return of the tax is filed on or before the due date.
   2. (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.
2. (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.
3. (c)Effective/applicability date. This section applies to deposits and payments made after December 31, 2010.