Penalty Relief Due to Statutory Exception


Tax legislation may provide an exception to a penalty. Specific statutory exceptions can be found in the penalty-related Internal Revenue Code (IRC) sections.

Incorrect Written Advice from IRS

If you received incorrect written advice from the IRS, you may qualify for a statutory exception. If you feel you were assessed a penalty as the result of erroneous written advice you received from IRS, the following items may be needed when requesting penalty relief:

  • Your written request for advice.
  • The erroneous written advice you relied on that was furnished to you by the IRS.
  • The report, if any, of tax adjustments identifying the penalty or addition to tax, and the item(s) relating to the erroneous advice.

Generally, Form 843, Claim for Refund and Request for Abatement should be filed to request penalty relief based on incorrect written advice from IRS. However, you can call the toll-free number provided on the notice you received to determine if the penalty is correct. If the penalty is correct, we may ask you to mail Form 843 and any supporting documentation.

Is Interest Relief Available?

Interest charged on a penalty will be reduced or removed when that penalty is reduced or removed. If an unpaid balance remains on your account, interest will continue to accrue until the account is full paid. See our Interest Overview page for additional interest information.

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