What penalty abatement recovers

When the IRS removes a penalty you already paid, it refunds the penalty and the interest it charged on that penalty. Depending on the grounds and your history, that typically returns 60% to 95% of what you paid.

What Gets Refunded
Abated penalties + the interest charged on them
Typical Recovery
60%–95% of penalties paid
Grounds
First-time abatement · Reasonable cause · COVID-era relief
Claim Form
Form 843 (Claim for Refund and Request for Abatement)
Refund Deadline
Generally 3 years from filing / 2 years from payment
Typical IRS Timeline
60–120 days from filing
The clock matters

Refund claims generally must be filed within three years of filing the return or two years of paying — whichever is later. Penalties from a few years back may still be recoverable, but the window closes, so a quick check now protects the claim.

From estimate to refund

Estimate your recovery here, then start a free review. We pull your IRS transcripts to confirm exactly which penalties were assessed and paid, identify the strongest grounds, prepare Form 843, and file it. The work is contingency-based — if we do not recover, you do not pay. See the full penalty abatement overview for how the grounds work.