Unexpected tax penalties can place an enormous strain on both individuals and small businesses. Whether it’s the result of a misstep in filing, a missed deadline, or unforeseen personal hardship, IRS penalties have a way of compounding quickly. For those facing mounting interest, late fees, or fines, relief may come from an often-overlooked document: IRS Form 843.
Form 843, officially titled “Claim for Refund and Request for Abatement,” is a formal method for taxpayers to request that certain IRS penalties or fees be reduced, removed, or refunded. While the IRS offers several forms of penalty relief—such as the First-Time Penalty Abatement policy—Form 843 is the tool used in more complex or hardship-based cases, especially when taxpayers are seeking relief due to reasonable cause.
How Form 843 Works and What It Covers
Unlike other methods of relief, Form 843 is meant to address a wider range of circumstances. Taxpayers must provide detailed information on the penalty being challenged, including the tax year in question and the specific IRS code section under which the penalty was assessed. The form also requires a written explanation for why the penalty should be abated, which is where most of the argument is made.
This explanation is especially critical when the request is based on reasonable cause. In these situations, the taxpayer must demonstrate that they acted in good faith and with ordinary care but were still unable to meet their obligations. The IRS may consider factors such as serious illness, natural disasters, or the loss of essential records to determine whether the circumstances justify penalty relief.
Taxpayers who can show a history of accurate and timely filings will generally have a stronger case. A pattern of past compliance helps show that the error in question was not part of a broader pattern of negligence, but a single deviation in an otherwise responsible record. This background becomes even more persuasive when paired with evidence of an extraordinary event or a credible explanation for the failure to comply.
Building a Strong Case for Reasonable Cause
Successful reasonable cause claims depend heavily on documentation. Events like wildfires, hurricanes, or medical emergencies must be supported by records such as FEMA notices, medical discharge paperwork, or proof of evacuation. In cases involving financial or technical obstacles, supporting evidence could include written correspondence with advisors or proof that key personnel were unavailable.
Even with strong evidence, taxpayers may still face a denial. However, the process doesn’t stop there. Claimants can pursue administrative appeals within the IRS or even file suit in federal court. If the claim is related to a penalty paid in full, the taxpayer can seek judicial review under 26 U.S.C. § 7422. These cases often hinge on whether the penalty was appropriate given the taxpayer’s specific circumstances, and whether the IRS appropriately evaluated the evidence provided.
While the possibility for relief exists, navigating this process can be daunting. Filing Form 843 properly—and crafting a persuasive argument—requires a deep understanding of both tax law and IRS procedure.
Why You Should Work with Hone Maxwell LLP
For San Diego residents seeking IRS tax relief, Hone Maxwell LLP offers the guidance needed to take full advantage of Form 843. Whether you’re a small business owner or an individual taxpayer, our firm understands how to build strong penalty abatement cases. From gathering supporting documentation to articulating a compelling reasonable cause narrative, our tax attorneys will walk you through each stage of the process.
What sets Hone Maxwell apart is our combination of legal expertise and practical experience. We don’t just know the law—we know how the IRS evaluates claims, what pitfalls to avoid, and how to present your case in a way that gives it the best chance of success. Our firm is committed to helping clients minimize unnecessary penalties and regain financial control.
Get the Tax Relief You Deserve
If you’re facing a burdensome tax penalty, don’t wait for it to spiral further out of control. Contact Hone Maxwell LLP today and speak with a tax attorney who can help you explore your options, build a strong claim, and file Form 843 with confidence. The path to tax relief may be more accessible than you think—but only if you have the right advocate by your side.
Hone Maxwell
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400, 3465 Camino del Rio S, San Diego, CA 92108
