[Code of Federal Regulations]
[Title 27, Volume 1]
[Revised as of April 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 27CFR194.111]

[Page 1215]
 
            TITLE 27--ALCOHOL, TOBACCO PRODUCTS AND FIREARMS
 
 CHAPTER I--ALCOHOL AND TOBACCO TAX AND TRADE BUREAU, DEPARTMENT OF THE 
                                TREASURY
 
PART 194_LIQUOR DEALERS--Table of Contents
 
                    Subpart H_Payment of Special Tax
 
Sec. 194.111  Waiver of penalties.

    In every case where a special tax return is not filed, or the tax is 
not paid, at the time prescribed in Sec. 194.104, the delinquency 
penalties specified in Sec. 194.109 for failure to file a return or for 
failure to pay the amount shown as tax on the return will be asserted 
and collected unless a reasonable cause for delay in filing the return 
or payment of the tax is clearly established. A dealer who believes the 
circumstances which delayed his filing of the return or payment of the 
tax are reasonable, and who desires to have the penalties waived, shall 
submit with his return a written statement under the penalties of 
perjury, affirmatively showing all of the circumstances alleged as 
reasonable causes for delay. If the regional director (compliance) 
determines that the delinquency was due to a reasonable cause and not to 
willful neglect or gross negligence, the addition to the tax will not be 
assessed. If the taxpayer exercised ordinary business care and prudence 
and was nevertheless unable to file the return within the prescribed 
time, or if he made a satisfactory showing that he exercised ordinary 
business care and prudence in providing for payment of his tax liability 
and was nevertheless either unable to pay the tax or would have suffered 
an undue hardship if he had paid on the due date, then the delay is due 
to reasonable cause. Mere ignorance of the law will not be considered a 
reasonable cause.

(68A Stat. 821, as amended; 26 U.S.C. 6651)

[T.D. 7110, 36 FR 8034, Apr. 29, 1971. Redesignated at 40 FR 16835, Apr. 
15, 1975, and amended by T.D. ATF-251, 52 FR 19335, May 22, 1987]