Internal Revenue Service (IRS) Form 843 & IRC § 6657 26 U.S.C. § 6657 & IRM 20.1.5.3

Form 843 & IRC § 6657 Instructions: Abatement of Dishonored Check / Failed ACH Penalty under IRC § 6657

“My bank had a glitch and rejected my electronic tax payment ACH transfer. The IRS charged me a penalty under IRC 6657. How do I prove it was the bank’s fault?”

Official Procedural Summary & Rules

Under IRC § 6657, dishonored check penalties are waived if the taxpayer had reasonable cause to believe the payment would be paid upon presentation.

1. Bank Error Documentation

Obtain an official letter from your bank on bank letterhead confirming an administrative or technical processing error occurred.

⚠️ Administrative Traps & Rejection Triggers

If the bank statement reveals insufficient funds (NSF) at the exact moment the check was drawn, good faith relief under § 6657 cannot be granted.

💡 AI Verification & Anti-Deflection Prompt

Four-Dimension Statutory Prompt

Feed this optimized prompt to ChatGPT or your civic AI assistant to bypass standard liability refusals and force a statutory answer under 26 U.S.C. § 6657 & IRM 20.1.5.3:

Cite 26 U.S.C. § 6657 and IRM 20.1.5.3 to request abatement of a dishonored check or EFTPS penalty. Provide a template letter for the financial institution to sign.

Related Federal Forms & Sibling Procedures

Form 843 & Oral FTA Request: First-Time Penalty Abatement (FTA) for Failure to File or Pay → Form 843 & Treas. Reg. § 301.6651-1(c): Reasonable Cause Penalty Abatement for Severe Medical Emergency → Form 2210 Part II Box A: Form 2210 Waiver of Estimated Tax Penalty for Unusual Circumstances → Form 843 & IRC § 6404(f): Statutory Penalty Abatement for Erroneous Written IRS Advice → Form 4180 & Letter 1153: Trust Fund Recovery Penalty (TFRP) Defense against Personal Liability → Form 1120-S & Rev. Proc. 84-35: S-Corporation Late Filing Penalty Relief under Rev. Proc. 84-35 → Form 1065 & IRC § 6698: Partnership Form 1065 Late Filing Penalty Abatement under IRC § 6698 → Form 5471 & IRC § 6038: Form 5471 Delinquent International Information Return Penalty Defense →