Form 843 serves three related functions in IRS practice: (1) requesting abatement of a penalty before it is paid, (2) requesting a refund of a penalty already paid, and (3) requesting abatement of interest charged on a penalty. In a typical abatement engagement, the form addresses all three at once.

Abatement vs. refund — same form

The IRS does not distinguish procedurally between "abate this penalty I haven't paid" and "refund this penalty I paid two years ago." Both use Form 843, with the same lines completed. If the penalty has not yet been paid, the abatement is reflected as a removal from the taxpayer's account. If it has been paid, the abatement triggers a refund check or direct deposit.

The four line entries that determine the outcome

Line 5 — Type of relief

For penalty abatement, check both Box 5a (Interest) and Box 5b (Penalty). The interest charged on the penalty is also refundable — abating the underlying penalty automatically rolls back the interest accrued on it, but you must include both lines to claim both refunds.

Line 6 — IRC section

Cite the section under which the penalty was assessed. The IRS examiner uses this to route the request:

  • IRC §6651(a)(1) — Failure-to-File
  • IRC §6651(a)(2) — Failure-to-Pay
  • IRC §6654 / §6655 — Estimated tax underpayment
  • IRC §6656 — Failure-to-Deposit (payroll)
  • IRC §6721 / §6722 — Information return penalties
  • IRC §6662 — Accuracy-related

Line 7 — Statement

For reasonable-cause cases, write "See attached statement" and attach a 1–2 page reasonable-cause statement. For FTA cases, write "Request for First-Time Penalty Abatement pursuant to IRM 20.1.1.3.6.1." For statutory exception cases (Kwong / COVID), cite IRC §7508A(d) and reference the postponement window.

Signature

Wet ink. Taxpayer or authorized officer for entities. Representatives sign only with a Form 2848 (POA) on file.

— Why both Box 5a and Box 5b —

Many filers check only Box 5b (Penalty) and leave Box 5a (Interest) unchecked, assuming the IRS will automatically refund the interest charged on the abated penalty. Sometimes it does. Sometimes it doesn't — particularly when the interest assessment is recorded separately on the taxpayer's account transcript. Checking both boxes eliminates the ambiguity and ensures the IRS treats both the penalty and the associated interest as part of the same claim.

Multiple periods on a single Form 843

One Form 843 can request abatement of multiple penalties across multiple tax years — as long as the underlying tax type is the same. A business with FTF penalties on 2020, 2021, and 2022 Form 1120-S filings can file a single Form 843 covering all three years. The Line 1 entry lists each period, and the attached statement addresses each.

Cases involving different tax types (income tax penalties AND employment tax penalties, for example) generally require separate Form 843s because they route to different IRS service centers and units.

The refund mechanism

When Form 843 is granted, the IRS:

  1. Removes the penalty from the taxpayer's account
  2. Removes the interest charged on the penalty
  3. If the amounts had already been paid, issues a refund — check or direct deposit, depending on the taxpayer's preference (the form has no direct-deposit field; the IRS uses the bank info on file from a prior return if available)
  4. Posts a Letter 3110 or similar notice confirming the abatement

The refund typically arrives within 60–120 days of the IRS posting approval. The statute of limitations under §6511 governs how far back the refund can reach — three years from the filing date or two years from the payment date, whichever is later.

Form
Form 843 (Rev. 12-2021)
Used For
Penalty abatement · interest abatement · refund of paid amounts
Critical Lines
Line 5 (relief type) · Line 6 (IRC section) · Line 7 (statement)
Attachment
Reasonable-cause statement (when applicable)
Refund Statute (§6511)
3 years from filing · 2 years from payment (later)
Typical Resolution
60 — 120 days