Requesting penalty abatement by phone, in writing or on Form 843

Before any request: fix the account

The IRS will not weigh a reasonable cause story on a module that is wrong. IRM 20.1.1.3 says relief criteria apply only after the penalized module has been analyzed and corrected (missing payments, extensions, tax adjustments), and: “Do not consider penalty relief until all issues have been addressed.” A misapplied payment or an extension that never posted is fixed by correction, and the systemic penalties (TC 166, 176, 186, 276 and so on) reverse on their own when the correction posts.

Then confirm which relief category fits. The IRS applies relief in a fixed order: correction of IRS error, statutory and regulatory exceptions, administrative waivers (including First Time Abate), and reasonable cause. A request that leads with reasonable cause may come back as FTA, because the IRM requires FTA to be applied first when the criteria are met. Taxpayers do not have to ask for FTA by name; the IRS's FTA page says it will review the account to see whether the requirements are met. See First Time Abate and reasonable cause.

For returns processed from summer 2026, the IRS's Automatic Exemption from Penalty may mean there is nothing to request: for 2025 tax year Forms 1040, 1065 and 1120 and 2026 quarterly employment tax returns, qualifying taxpayers are not assessed the failure-to-file, failure-to-pay or failure-to-deposit penalty, and receive a letter saying so.

Requests by phone

The IRS reasonable cause page says “We may reduce or remove some penalties over the phone”, directs callers to the toll-free number at the top right corner of the notice, and lists what to have ready: the notice, the penalty, and the reasons it should be removed. Practitioners with a Form 2848 on file can use the Practitioner Priority Service line instead.

On the IRS side, the employee uses the Reasonable Cause Assistant (RCA), a decision tool that IRM 20.1.1.3.6 says is used for failure-to-file and failure-to-pay penalties on Form 1040-series returns and for failure-to-deposit penalties on Forms 941, 940, 943, 944 and 945. RCA also screens for FTA. Some facts can be accepted orally as “credible information”, which IRM 20.1.1.3.6.5 says must explain the facts and circumstances showing ordinary business care and prudence and “cite specific dates for the non-compliance.” Prepare a dated chronology before calling; vague answers produce a sustain decision.

An oral request can work only for the failure-to-file (FTF), failure-to-pay (FTP) and failure-to-deposit (FTD) penalties. IRM 20.1.1.3.1 allows unsigned or oral requests for those three when the request comes from the taxpayer, an authorized representative or a third party and reasonable cause criteria are met, and when the penalty is within the oral statement authority (OSA) threshold. The public IRM does not publish the dollar threshold. If RCA concludes the penalty should be abated but the threshold is exceeded, the IRS asks for a signed written statement before abating; a denial, by contrast, never requires one (IRM 20.1.1.3.6.4).

The employee must document what was said. IRM 20.1.1.3.1: “When an unsigned or oral request for relief is received, the IRS employee must document the case file or adjustment document clearly restating the information provided by the taxpayer.” Ask for the employee's name and ID number and note the call date. If a signed statement is needed to finish, the IRM allows a faxed statement with signature.

What cannot be done on a call

For every penalty other than FTF, FTP and FTD, the IRM requires a written statement signed under penalties of perjury. IRM 20.1.1.3.1 gives examples of requests that may not be considered orally or without an authorized signature:

• TIN penalties,
• information return penalties (including the IRC 6721 and 6722 penalties proposed on Notice 972CG, which IRM 20.1.7.6 describes as the proposed civil penalty notice for information returns), and
• penalties assessed by a compliance program, such as an examination.

When a call involves two or more penalties and any one is above the oral threshold or is not an FTF, FTP or FTD penalty, the IRM tells employees not to abate any of them and to ask for a signed written request covering all of them. Other penalty sections add their own rules: the dishonored payment penalty requires written documentation (IRM 20.1.10.7.3 says oral testimony will not be accepted), and the international information return penalties call for a written statement under penalties of perjury (IRM 20.1.9). See dishonored payment penalty and international information return penalties.

Third parties can make requests. IRM 20.1.1.3 says the IRS will consider requests from third parties, including representatives without a power of attorney, but “no taxpayer information may be discussed with a third party unless a valid power of attorney or other acceptable authorization is secured in writing from the taxpayer.” File the Form 2848 first if you need to discuss the account.

Written requests

A letter works for any penalty, and it is the only option for many. IRM 20.1.1.3.5 explains how the IRS reads it: the request must identify the penalty or penalties and address reasons for each, because each penalty is for a different failure, and “if the taxpayer specifically requests relief from only one penalty, then only that one penalty should be considered.” Dates in the explanation should line up with the events behind the penalty, and the IRS checks at least three years of compliance history and how long it took to comply after the cited event ended.

A complete letter includes:

• name, TIN, tax form and tax period, and the notice number and date;
• each penalty by name and Code section, and the amount;
• the relief requested (FTA, a statutory exception, reasonable cause, IRS error), in the alternative if more than one may apply;
• a dated account of what happened, what the taxpayer did to comply, and when compliance occurred;
• supporting documents, such as hospital records with dates, disaster documentation, or copies of IRS correspondence (the examples on the IRS reasonable cause page);
• a signature under penalties of perjury when the penalty is one that requires it, and the representative's Form 2848 if one is signing.

Mail it to the address on the notice. The penalty abatement letter guide and the FTA and reasonable cause templates cover drafting.

Form 843, line by line

Form 843 (Rev. December 2024) is the formal claim for refund and request for abatement. It is not required for an abatement request, but it is the IRS's preferred format, it is the right form for a refund claim of a paid penalty, and it creates a clear record. The instructions:

TopReason checkbox

Check exactly one box above the name, for example abatement or refund of a penalty or addition to tax due to reasonable cause or other reason allowed under the law.

1Tax period

One period per form; the instructions say a separate Form 843 is generally required for each tax period or type of tax.

2Amount

The dollar amount to be refunded or abated.

3Payment dates

If the penalty was paid, the date of each payment. This turns the form into a refund claim subject to IRC 6511.

4Type of tax

The tax to which the penalty relates (employment, income, estate and so on).

5Type of return

The return the penalty relates to (for example 941, 1065, 1120).

6Code section

The IRC section of the assessed penalty, usually printed on the notice (for example 6651(a)(1), 6698, 6656).

7Reason

Box a: IRS errors or delays (interest); box b: erroneous written advice; box c: reasonable cause or other reason allowed under law; box d: none of these.

8Explanation

The detailed reasons, computation and supporting evidence; attach sheets with the name and TIN on each.

Signatures: both spouses sign for a joint return, a corporate officer with title signs for a corporation, the fiduciary signs for an estate or trust, and a paid preparer who prepares the form signs the preparer block. Where to file: in response to a notice, the address the notice came from; for penalties otherwise, the service center where the current-year return for that tax would be filed. Full detail is on the Form 843 page.

What happens after the request

If relief is granted, the penalty is abated with a penalty reason code, and interest on it comes off automatically. If FTA was used instead of the reasonable cause the taxpayer offered, the IRS must say so; the IRM's model language is that relief was granted because of a good history of filing and paying on time and “This type of penalty removal is only available one time.”

If relief is denied, the IRS must say so in writing with appeal rights, however the request came in. IRM 20.1.1.3.5.3 requires written notification of the denial and appeal rights “regardless of whether the request was received” in person, over the phone or in writing. The usual letters are 854C (campus), 852C and 853C (generated through RCA), and 2413(P) (Collection). From there, see appealing a penalty abatement denial. If the penalty was paid and the request was not a timely claim, see refund claims for paid penalties.

For payers dealing with information return penalties, TIN Compliance explains Form 843 claims versus abatement requests and how the Automatic Exemption from Penalty works.

Questions practitioners ask