Abatement of Tax Assessment Law and Legal Definition

Abatement of tax assessment is the relief granted against an assessment for illegality or irregularity in the imposition of the tax or, under some statutes, because of the impoverishment of the taxpayer.

The Internal Revenue Code allows the Internal Revenue Service to abate an assessment in certain circumstances. The Secretary is authorized to abate the unpaid portion of the assessment of any tax or any liability in respect thereof, which:

1) is excessive in amount, or

2) is assessed after the expiration of the period of limitation properly applicable thereto, or

3) is erroneously or illegally assessed. [26 USCS § 6404 (a)]

An assessment may be abated if the IRS determines under uniform rules prescribed by the Secretary that the administration and collection costs involved would not warrant collection of the amount due. [Becker v. IRS (In re Becker), 407 F.3d 89 (2d Cir. N.Y. 2005)]