1. Phone Call
• Contact the Practitioner Priority Service or Automated Collections System to make a verbal request for First-Time Abatement.
• If the verbal request is denied, you can submit additional requests by phone or in writing.
2.Written Request
• You can use Form 843 or write a letter to submit your request. Mail it to the address provided on the most recent IRS notice or the appropriate processing center where you would normally file a paper tax return.
• Generally, written requests should be submitted only once.
3. The Approval
• If your request is approved over the phone, the decision is usually immediate, but it may take several cycles for the adjustment to appear on your transcript.
• The IRS representative will follow a script and inform you that:
• You will receive a letter within 10-14 days.
• The penalty has been abated due to a good history of timely filing and payment.
4. The Amount
• For the year in which the First-Time Abatement is granted, any outstanding balance will be reduced by the amount of the FTA.
• If the abatement amount exceeds the balance due for that year, a refund will be issued as long as the Refund Statute Expiration Date has not expired.
• If the Refund Statute Expiration Date has not expired for the year of the FTA (within 3 years of the original filing date or 2 years of the payment date), the taxpayer will receive a refund under the Refund Statute Expiration rules.
Note:
1.If the Refund Statute Expiration Date has expired and there is no outstanding balance, the taxpayer will not receive any benefit.
2.The content of IRS Letter 3503C is displayed on the picture below.
3. Sources: IRS IRM 20.1.1.3.3.2.1.4, Tax Help Software, Cpeacademy.