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
AEP (if never assessed) · FTA (transition) · Reasonable cause
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
— Ordinary refund statute —

Refund claims generally must be filed within three years of filing the return or two years of paying — whichever is later. That is the ordinary §6511 rule, not a special COVID countdown. A transcript review will show whether a paid penalty is still inside that statute.

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.