Abatement of Additional Tax

(1) If the disqualified person corrects the excess benefit transaction during the

correction period defined in Section 4963(e), the 200% tax must:

a. Not be assessed

b. Be abated, if assessed, and

c. Be credited or refunded, if collected.

See Section 4961.

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(2) Where a disqualified person makes only partial correction of the excess benefit

transaction within the correction period, then only the 200% tax regarding the corrected portion of the excess benefit transaction (including interest, additions to the tax, and additional amounts) is abated, refunded or not assessed. See Treas. Regs. 53.4958-1(c)(2)(iii), 53.4963-1, Sections 4961(a) and 4963.