How to Request the Removal of an IRS Penalty
The IRS has high standards to meet for it to approve the removal of a penalty. However, it is possible to get the penalty lifted if it truly has been assessed in error. The process is called abatement, and the penalty must have either been assessed incorrectly by the IRS, or you must have relied on IRS's advice in the action that led to the penalty.
Other People Are Reading
Instructions
-
-
1
Gather the necessary financial documents. You will need copies of any correspondence between you and the IRS, including any prior requests for advice, any previous letters from the IRS regarding this particular situation and the notice you received on the penalty you are challenging.
-
2
Fill out IRS Form 843: Claim for Refund and Request for Abatement. This is a one-page form that simply lays out your background information and some details of your initial tax return and the incorrect penalty. The form gives you a chance to list your explanation for why the penalty was incorrect. You may attach additional paper if you need more room for your explanation. Be sure to be as detailed as possible, as you need to make a convincing case to the IRS agent who reads your form.
-
-
3
Mail Form 843 and your documents to the IRS. If you received a specific notice regarding the penalty, send your papers to the address given. Otherwise, mail your papers to the service center used for your initial tax return.
-
1
Tips & Warnings
If you are requesting the abatement of an IRS penalty because of improper advice from an IRS agent, be sure to be especially thorough in your explanation. You will have to prove five factors for this scenario: you asked the IRS for advice on this specific issue, you provided the IRS with accurate information, the IRS gave you advice, you used the IRS's improper advice and the improper advice led to the penalty in question.
Do not use Form 843 for a normal tax refund. Form 843 should only be used when applying for a refund or abatement of an incorrect penalty or other error.
