What Is a Petition for Abatement and How Do I File?

A petition for abatement is a formal request submitted to a tax authority like the IRS to reduce or eliminate penalties and, in some cases, associated interest or the underlying tax. When a taxpayer fails to file a return, pay taxes on time, or deposit certain taxes as required, the IRS may assess penalties. An abatement request allows taxpayers to argue for the removal of these penalties due to justifiable circumstances, but it requires a well-documented case.

Grounds for Requesting an Abatement

The IRS provides specific grounds upon which a taxpayer can request the removal of penalties. The First-Time Abate (FTA) program is an administrative waiver for taxpayers with a clean compliance history. To qualify, a taxpayer must have filed all required returns, or filed a valid extension, and paid or arranged to pay any tax due. This relief applies to failure-to-file, failure-to-pay, and failure-to-deposit penalties for a single tax period.

Beyond the administrative waiver, a primary justification for abatement is demonstrating “Reasonable Cause.” This is a facts-and-circumstances test where the taxpayer must show they exercised ordinary business care and prudence but were unable to meet their tax obligations because of events beyond their control. The IRS considers several situations to constitute reasonable cause:

• The death or serious illness of the taxpayer or a member of their immediate family, which is directly linked to the inability to file or pay on time.
• An unavoidable absence, where the taxpayer was physically unable to manage their tax affairs.
• A fire, casualty, natural disaster, or other disturbance that destroyed the taxpayer’s home, place of business, or records.
• The inability to obtain necessary records, despite prudent efforts.
• Reliance on erroneous advice from the IRS or a competent tax advisor who was provided with all necessary and accurate information.

The taxpayer must demonstrate a clear link between the event and the failure to comply.

Information and Documents Needed for Your Petition

Preparing a petition for abatement requires gathering specific information and compiling thorough documentation. The central document for this request is IRS Form 843, Claim for Refund and Request for Abatement. You must accurately complete all required fields, including the tax period, the type of tax, and the specific penalties you are disputing, along with their dollar amounts. A part of Form 843 requires a clear explanation of the facts that support your claim, aligning with grounds like Reasonable Cause or First-Time Abate criteria.

The success of your petition depends on the quality of your supporting documentation, as the evidence must directly corroborate the claims in your explanation. For a request based on a serious illness, this would include a letter from a physician detailing the dates and nature of the illness and explaining how it incapacitated you from handling your financial affairs. If your claim is based on a fire or natural disaster, you should provide copies of insurance claims or police reports.

For claims involving erroneous advice from a tax professional, you need to provide a statement from the advisor acknowledging the incorrect advice, along with evidence that you provided them with complete and accurate information. If relying on incorrect advice from the IRS, you should include any written correspondence or notes from phone calls, including the date, time, and name of the representative. Always send copies of these documents, not the originals, as they will not be returned.

The Submission and Review Process

Once you have completed Form 843 and gathered all supporting documents, the next step is to submit the package. The form should be signed and dated, with all attachments organized behind it. The mailing address depends on the type of tax and where you filed your original return; consult the official instructions for Form 843 to avoid delays.

After mailing the petition, the IRS will send a letter acknowledging its receipt, though the review process can take several months. An IRS employee will evaluate the information and evidence to determine if your circumstances meet the criteria for penalty relief.

The review will result in the abatement being granted in full, partially granted, or denied. The IRS will notify you of its decision in writing. If your request is approved, the penalties and any associated interest will be removed from your account. If denied, the letter will explain the reasons and provide information on your right to appeal.