Sometimes life happens—and taxes are the last thing on your mind. But if you’re hit with IRS penalties, don’t panic. There are two main ways to request relief: Form 843 and a penalty abatement letter. Knowing which one to use can save you time, stress, and maybe even money.
What Is Form 843?
Form 843 is the IRS’s offical form for requesting:
- A refund of penalties or interest you already paid
- Removal (abatement) of certain penalties due to:
- Reasonable cause
- IRS error
- Statutory exceptions
✅ Best for:
- Formal requests, especially if you’ve already paid the penalty or need a refund.
What Is an Abatement Letter?
An abatement letter is written request you send to the IRS explaining why a penalty should be removed.
✅ Best for:
- Informal or first-time requests
- Situations where you haven’t paid the penalty yet
- When you want to include a personal explanation or supporting documents
Which Should You Use?
| Situation | Use Form 843 | Use Abatement Letter |
|---|---|---|
| Already paid the penalty? | ✅ | |
| Want to include a detailed explanation? | ✅ (with letter attached) | ✅ |
| Haven’t paid yet? | ✅ | |
| Want to request First-Time Abetement (FTA)? | ✅ | ✅ |
| Need a formal, trackable request? | ✅ |
Tip: You can attach an abatement letter to Form 843 to give the IRS both the formal request and your full explanation.
Final Thoughts
IRS penalty relief is possible–but choosing the right method is key.
Use Form 843 for refunds or formal abatements, and letters when you need to explain your situation clearly.
In some cases, using both together is your best bet.
Leave a Reply