To request an abatement, you must complete form 843 and file it with the IRS.
What is an abatement?
When referring to taxes, an abatement is a reduction in the amount owed. This is generally applied to taxes, penalties, fees, etc.
What is Form 843?
Form 843 is the form you need to fill out to request an abatement for the items listed above.
Do I qualify for an abatement?
According to the IRS. "You may qualify for administrative relief from penalties for failing to file a tax return, pay on time, and/or to deposit taxes when due under the Service's First Time Penalty Abatement policy if the following are true:
- You didn’t previously have to file a return or you have no penalties for the 3 tax years prior to the tax year in which you received a penalty.
- You filed all currently required returns or filed an extension of time to file.
- You have paid, or arranged to pay, any tax due.
The failure-to-pay penalty will continue to accrue, until the tax is paid in full. It may be to your advantage to wait until you fully pay the tax due prior to requesting penalty relief under the Service's first time penalty abatement policy.
Other administrative relief: If you received incorrect oral advice from the IRS, you may qualify for administrative relief."
What fees/penalties can I abate?
You can abate penalties for
- Failure to file a tax return
- Failure to pay on time
- Failure to deposit taxes (income tax withheld and both the employer and employee social security and Medicare taxes IF APPLICABLE)
Can I abate interest?
Any interest applied to a penalty will be reduced/removed when that penalty is reduced/removed. If you still have an unpaid balance on your account, interest will continue to accrue until the account is full paid. You can abate interest due to IRS error or delay. See the instructions for line 5 for information on how to complete the form if you are abating interest.
How do I complete abatement form 843?
- Line 1 is the tax year the abatement is for
- Line 2 is the total fees/penalties you are asking the IRS to remove.
- Line 3 is generally going to be Income (tax).
- Line 4 is the Internal Revenue Code section. Generally, you can find the Code section on the Notice of Assessment you received from the IRS.
- Line 5a is the reason you are requesting the abatement. This will most likely be reasonable cause unless it was due to IRS error (see Can I abate interest? above).
- Line 6 is the original tax form filed. Our program supports the 1040 only.
- Line 7 is the where you would explain why you are filing the claim for abatement. Attach supporting documents.
Where do I mail Form 843?
Mail the form to the address indicted in the instructions. These are based on if you are responding to a notice and which notice you received.