Requesting Interest Abatement Under IRC 6404 g

Internal Revenue Code Section 6404(g) protects individual taxpayers from interest charges that accumulate due to significant delays by the Internal Revenue Service. If the IRS fails to notify a taxpayer of an additional tax liability in a timely manner, this provision can suspend the accrual of interest. This prevents taxpayers from being penalized for delays outside of their control.

Qualifying for Relief Under IRC 6404(g)

To be eligible for interest suspension, a taxpayer and the type of tax must meet specific requirements. This relief is available exclusively to individual taxpayers for underpayments of income tax. It does not extend to other types of taxes, such as employment or estate taxes, nor does it apply to business entities like corporations.

The core of this relief is a specific time limit the IRS must meet. The IRS has 36 months to notify a taxpayer of an additional liability. This period begins on the later of the original due date of the tax return or the date the return was actually filed. The clock stops on the date the IRS mails the taxpayer the first formal notice that specifies the amount of the proposed liability and explains the reasons for it.

For example, if a taxpayer timely filed their 2020 tax return on April 15, 2021, the 36-month period would end on April 15, 2024. If the IRS did not send a notice of liability until May 2024, the interest that accrued between the end of the 36-month period and the date of the notice would be subject to suspension.

Situations That Invalidate Relief

Several circumstances will prevent a taxpayer from qualifying for interest suspension, even if the IRS misses the notification deadline. The relief does not apply to any interest associated with the tax amount originally shown on the filed return. It also does not cover penalties, such as the failure-to-file penalty.

Certain taxpayer actions or specific types of transactions also invalidate a claim for relief. The interest suspension is not available in any case that involves fraud. It is also disallowed for tax liabilities from participation in “listed transactions” or “reportable transactions” that have a significant tax avoidance purpose, which are transactions the IRS has identified as having a high potential for tax abuse.

A taxpayer must have filed a tax return for the year in question to be eligible for this relief, as the time clock cannot begin if a return was never submitted.

Information and Documentation for Your Claim

To submit a request, you must gather specific information and documentation, including:

• The tax year for which you are requesting relief.
• The exact date you filed the tax return for that year.
• The date of the IRS notice you received.
• The notice itself, such as a CP2000 or a formal Statutory Notice of Deficiency, which contains the liability amount and the date it was sent.

The official document for this request is Form 843, Claim for Refund and Request for Abatement. Taxpayers should download the most current version of this form from the IRS website. Using an outdated form could lead to processing delays or rejection of the claim.

When completing Form 843, you must provide a clear reason for your request on Line 7. State that you are requesting an interest abatement under the applicable Internal Revenue Code section. In your explanation, list the key dates: when the tax return was filed and the date of the IRS notice, noting the notice was received after the allowed time period expired.

Submitting Your Request for Abatement

If your request is in response to a specific IRS notice, mail the completed Form 843 to the address shown on that notice. Otherwise, the correct mailing address can be found in the official instructions for Form 843 or on the IRS website.

After mailing the form, the IRS will review the claim to verify the dates and confirm that no disqualifying exceptions apply, which can take several months. The IRS will then send a formal letter of determination that either approves the request and abates the suspended interest or denies the claim with an explanation.