Form 843 for Form 5472 Penalty Abatement - How to File the Request
Summary
Form 843 is how you formally request abatement of an assessed Form 5472 penalty. The fields are not obvious for §6038A cases. This guide walks through each one.
If the IRS has assessed a $25,000 penalty for a missed Form 5472 (typically through a CP15 or CP215 notice), Form 843 is the procedural vehicle for requesting abatement. The form is short, but the fields are not obvious for §6038A cases. Each field needs to be completed in a specific way, and a written reasonable cause statement must be attached.
When Form 843 is the right vehicle for a Form 5472 penalty
Form 843 (Claim for Refund and Request for Abatement) is the standard IRS form for requesting abatement of an assessed penalty. For a Form 5472 penalty under IRC §6038A(d)(1), file Form 843 with a written reasonable cause statement under §6664(c) attached. Mail to the address on the assessment notice (CP15 or CP215). Process takes 6-9 months. Abatement is granted in a substantial portion of well-prepared first-time foreign-founder cases.
Form 843 is used after the IRS has assessed a penalty. The trigger is a written assessment notice in your hands. For Form 5472 cases, this is typically:
- CP15 (Notice of Penalty Charge) for individual-side assessments
- CP215 (Notice of Penalty Assessment) for business-side assessments
- An IRS examination determination letter following an audit
If you have not received an assessment notice, you do not need Form 843 yet. Voluntary catch-up filers attach a reasonable cause statement directly to the late Form 5472 filing, not Form 843. Form 843 is specifically for cases where a penalty is already assessed and you are asking the IRS to reverse it.
What to enter in each field
Form 843 has 7 substantive fields. For Form 5472 penalty cases, each field has a specific entry that is not always intuitive.
| Field | What to enter for a Form 5472 penalty |
|---|---|
| Line 1 - Tax period | The tax year the penalty was assessed for. If the notice covers several years, file a separate Form 843 for each; the IRS processes each year independently. |
| Line 2 - Amount to be refunded or abated | The amount assessed for that year, as shown on the CP15 or CP215. For a base §6038A penalty before continuation, $25,000. |
| Line 3 - Type of tax or fee | Check "Other" and write "§6038A penalty for Form 5472". The predefined boxes cover income, employment and excise tax; §6038A is none of them. |
| Line 4 - Type of return | Check "Other" and write "Form 5472 / Pro Forma Form 1120". |
| Line 5 - Code section | "IRC §6038A(d)(1)" for a base assessment. Add "and §6038A(d)(2)", with the dollar breakdown noted, if continuation penalty has accrued. |
| Line 6 - Reason for the claim | Check "Reasonable cause or other reason allowed under the law", then one or two summary sentences. This tells the examiner the request rests on §6664(c). |
| Line 7 - Explanation | "See attached reasonable cause statement." The full argument belongs in the attachment, not on the form. |
The Line 6 text box takes the summary, not the full argument. One or two sentences is the right length:
Reporting corporation is a foreign-owned U.S. disregarded entity. The owner was not aware of the Form 5472 filing requirement at the time the return was due. Detailed reasonable cause statement under IRC §6664(c) is attached.
What to attach to Form 843
Form 843 is a one-page form. The substance of your case sits in the attachments. For a §6038A penalty abatement, attach:
1. Written reasonable cause statement (1-3 pages). This is the centerpiece of the package. The statement should:
- Identify the LLC by name and EIN
- State the tax year(s) at issue
- Explain the foreign owner's situation (country of residence, formation method, professional services engaged)
- State why the failure occurred (typically: unaware of the requirement, formation service did not advise, no US-based tax advisor)
- Demonstrate that the owner acted with ordinary business care and prudence for someone in their position
- Reference IRC §6664(c) and the framework in IRM 20.1.1.3.6.1
- Request abatement of the assessed penalty
2. Copy of the IRS assessment notice (CP15 or CP215). Provides the assessment context.
3. The late-filed Form 5472 + Pro Forma 1120, if not previously filed for that year. The penalty relates to a specific filing failure; the abatement request is more credible when the underlying filing is now corrected.
4. Supporting documents that demonstrate the foreign owner's situation. These often include:
- LLC formation documents (showing formation by Stripe Atlas, Doola, etc.)
- EIN assignment letter
- Documentation of the date the owner learned of the Form 5472 requirement
- Any correspondence with formation services that did not mention the requirement
The package should be cohesive. The reasonable cause statement narrates the story; the supporting documents corroborate the facts.
Where to mail Form 843
The mailing address depends on the assessment notice. Form 843 should be sent to the address shown on the CP15 or CP215 notice you received, which is typically:
Internal Revenue Service Center where the original return was filed
For foreign-owned single-member LLCs, this is generally the Ogden Submission Processing Center. The specific address on your notice is the controlling address. Send by certified mail with return receipt. Keep both the receipt and a complete copy of the package.
If you are filing the original Form 5472 + Pro Forma 1120 along with Form 843 (because the late return was never filed), the original return goes to the dedicated Ogden address for foreign-owned DEs:
Internal Revenue Service 1973 Rulon White Blvd, M/S 6112 Attn: PIN Unit Ogden, UT 84201
The Form 843 can reference the late filing being submitted concurrently.
Processing timeline and what to expect
The IRS processes Form 843 for §6038A cases at the Ogden facility. Typical timeline:
- Acknowledgment letter: 4-8 weeks after receipt
- Examiner review: 3-6 months
- Determination: 6-9 months total
The IRS examiner reviews the reasonable cause statement against the framework in IRM 20.1.1.3.6.1. The examiner is asking whether the foreign owner acted as a reasonable person in the same position would have acted, given what they knew at the time. First-time foreign founders unaware of §6038A typically meet this standard, particularly when:
- The formation was through a service that did not disclose the requirement
- The owner is in a country where US tax compliance is not part of professional knowledge
- The owner had no US-based tax advisor
- The discovery and corrective filing were prompt once the requirement was understood
The acceptance rate for well-prepared first-time foreign-founder cases tends to be high, though no advance guarantees exist. Cases where the failure persisted across multiple years after the requirement was known, or where the foreign owner had US-based professional advisors who should have flagged it, face a steeper standard.
What is at stake while the claim is pending
Form 843 argues about a penalty already assessed. It does not freeze the amount. If the underlying Form 5472 is still unfiled, the continuation penalty under IRC §6038A(d)(2) keeps adding $25,000 for each 30-day period or fraction of one after the 90-day notice period closes, and a Form 843 that takes six to nine months to process gives that clock a long run.
The arithmetic is straightforward and it is why the missing return goes in the same envelope. A $25,000 assessment answered on day 91 with the return still unfiled is $50,000. Left another 30 days, $75,000. Filing the return stops the accrual on the day it is filed. Form 843 then argues about what accrued up to that point, which is a fixed number rather than a moving one.
Form 843 fails for the same reasons any abatement request fails: no assessment notice yet, a statement that asserts hardship rather than reasonable cause, or a claim filed after the refund window. See what does not work on a $25,000 penalty.
Filing Form 843 and what happens over the next nine months
If you have received a CP15 or CP215 notice for a Form 5472 penalty, file Form 843 with a written reasonable cause statement under §6664(c) and the underlying late return (if not previously filed). Send by certified mail to the address on the notice. Wait 6-9 months for a determination.
For most foreign founder cases, Form 843 with a strong reasonable cause statement is the right vehicle. Notice cases benefit from CPA review of the abatement arguments because the IRS has already taken a position by assessing the penalty, and the abatement letter must address that position directly. A CPA review is appropriate when the assessment is in writing.
For voluntary catch-up filers who have not received a notice, Form 843 is not yet the right vehicle. Instead, file the late Form 5472 with a reasonable cause statement attached, and address abatement preemptively. The cornerstone diagnostic is at Missed Form 5472: Penalty Exposure, Relief Paths, and How Bad Your Case Actually Is. For the immediate panic flow, see What to Do Right Now.
The IRS's official Form 843 page is at IRS.gov/Form843.
Questions about filing Form 843
Can I file Form 843 before receiving a CP15 or CP215?
No. Form 843 requests abatement of an assessed penalty. If no penalty has been assessed, there is nothing to abate. Voluntary catch-up filers attach a reasonable cause statement to the late Form 5472 itself, not to a separate Form 843.
How long do I have to file Form 843 after receiving a CP15?
The CP15 notice typically gives 30 days to respond. Filing Form 843 within that window preserves the strongest procedural position. Filing later is still possible (the abatement request is generally available within the assessment statute of limitations), but the continuation penalty under §6038A(d)(2) accrues at $25,000 per 30-day period after the 90-day notice period from the assessment.
Does Form 843 stop the continuation penalty from accruing?
Filing Form 843 does not by itself stop continuation. The continuation penalty under §6038A(d)(2) ceases when the underlying Form 5472 is filed. If you have not yet filed the missing Form 5472, file it concurrently with Form 843. The combination establishes that the failure has been corrected.
Can I file one Form 843 for multiple years?
No. File a separate Form 843 for each tax year and each penalty assessment. This prevents the IRS from processing one year and overlooking another. It also makes the case cleaner for the examiner.
What if my Form 843 is denied?
A denied Form 843 can be appealed to the IRS Independent Office of Appeals. The appeal request is filed within 30 days of the denial letter. Appeals offers a fresh review by a different examiner not involved in the original determination.
Do I need a professional to file Form 843 for a Form 5472 penalty?
The form itself is short and can be self-prepared. The reasonable cause statement is the substantive piece, and the strength of that statement determines outcome. For complex multi-year cases or where the IRS has already taken an adverse position, a CPA with experience in §6038A matters typically improves outcomes meaningfully.
Does filing Form 843 stop the amount from growing?
No. Form 843 asks the IRS to remove a penalty already assessed. It does not stop the continuation penalty under IRC §6038A(d)(2), which keeps adding $25,000 for each 30-day period the Form 5472 remains unfiled after the 90-day notice period. Filing the missing Form 5472 is what stops the growth. Form 843 argues about what has already accrued.
What amount do I put on Form 843 if the continuation penalty is still running?
State the assessed amount from the notice and describe the continuation accrual in the attached statement rather than guessing a total. If the notice assessed $25,000 and the filing landed on day 100, another $25,000 has accrued for the first 30-day period past the 90-day mark, and the figure the IRS holds is $50,000. Describe the sequence and let the service reconcile it.
Can I file Form 843 and the late Form 5472 in the same envelope?
Yes, and for notice cases that is usually right. The abatement request is stronger when the failure it asks forgiveness for has already been cured. Send both to the address on the notice, by certified mail with return receipt, and keep a full copy of everything.
Related pages
Continue reading
Reasonable Cause Letter for Late Form 5472 - What It Needs to Contain →
Filing a late Form 5472 without a reasonable cause statement triggers automatic penalty assessment. The statement's structure determines whether the abatement is granted.
DIIRSP vs Reasonable Cause vs First-Time Abatement - Which Path for Late 5472 Filers →
Foreign founders sometimes encounter conflicting advice about which IRS relief program covers a late Form 5472 case. This guide clarifies which path actually applies.
IRS CP15 and CP215 Notices for Foreign LLCs - What Each Means and Exact Next Steps →
A CP15 or CP215 notice means the IRS has assessed the Form 5472 penalty against your LLC. The continuation clock starts at the 90-day mark from notice mailing.