90-day period beginning on the first date the employer knew, or exercising reasonable diligence would have known, that such failure existed. (4) Waiver by Secretary In the case of a failure which is due to reasonable cause and not to willful neglect, the Secretary may waive part or all of the tax imposed by subsection (a) to the extent that the payment of such tax would be excessive or otherwise inequitable relative to the failure involved. (c) Procedures for notice The Secretary may prescribe and implement procedures for obtaining confirmation of whether employers are subject to the tax imposed by subsection (a). The Secretary, in the Secretary’s discretion, may prescribe that the confirmation shall be obtained on an annual or less frequent basis, and may use for this purpose the annual report or quarterly report for employment taxes, or such other means as the Secretary may deem advisable. . (g) Waiver of early withdrawal penalty for certain distributions following initial election To participate in automatic IRA arrangement Section 72(t) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (11) Distribution following initial election to participate in automatic IRA arrangement Paragraph (1) shall not apply in the case of a distribution to a qualifying employee made not later than 90 days after the initial election under section 408B(d)(1)(A)(ii). . (h) Bankruptcy Section 522 of title 11, United States Code, is amended— (1) in subsection (d)(12), by inserting , 408B after 408A , and (2) in subsection (n), by inserting , or in a qualifying automatic IRA arrangement described in section 408B after section 408(p) of such Code . (i) Conforming amendments (1) The table of sections for subpart A of part I of subchapter D of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 408A the following new item: Sec. 408B. Qualifying automatic IRA arrangements. . (2) The table of sections for chapter 43 of such Act is amended