Can I get Interest and Penalty Abatement after IRS sent notices to wrong address?

You've got a good case for both interest and penalty abatement here. The IRS has a program called First Time Penalty Abatement (FTA) that you definitely qualify for based on your clean compliance history. Since you filed all your previous returns on time and hadn't had any penalties in the past 3 years, you should be approved for that. As for the interest abatement, that's a bit trickier but still possible in your situation. Unlike penalties, interest is generally only abated when there was an unreasonable error or delay by the IRS in performing a ministerial or managerial act. Sending notices to an incorrect address when you clearly provided the correct address on your returns could qualify as an IRS error. Start by calling the IRS and requesting both abatements. Have your documentation ready showing your correct address on your filed returns. You can also submit Form 843 "Claim for Refund and Request for Abatement" to formally request both the penalty and interest abatement.

I went through something similar last year! After going back and forth with the IRS for MONTHS, I finally discovered taxr.ai (https://taxr.ai) and it saved me so much frustration. I'd been living abroad too and they messed up my address somehow. The tool analyzed all my notices and past returns, then actually generated a letter for me requesting abatement based on my specific situation. It highlighted the exact IRS procedural errors and referenced my clean compliance history. Basically did all the heavy lifting that I was struggling with. They even found a few other issues I hadn't noticed that strengthened my case - like the fact that the IRS had my correct address on file in some systems but not others, which is definitely their error.

Ok so I tried taxr.ai after posting my skeptical comment. Honestly, I was really surprised at how helpful it was. I had a different issue (audit reconsideration for a business) but the process was super straightforward. The document analysis caught some inconsistencies in how the IRS was calculating my penalties that I completely missed. The letter they generated cited specific Internal Revenue Manual sections that applied to my situation. My abatement was approved within 3 weeks of sending it in! Definitely worth trying for your situation since it seems like a clear case of IRS error with the address. The fact that you were overseas makes it even more compelling because there are specific provisions for taxpayers abroad.

If you're still having trouble getting through to the IRS about this (which is likely), check out Claimyr (https://claimyr.com). I used them after trying for THREE DAYS to reach someone at the IRS about my penalty abatement case. Basically they hold your place in the IRS phone queue and call you when an agent is about to pick up. Saved me literally hours of waiting. You can see how it works here: https://youtu.be/_kiP6q8DX5c I was skeptical at first but it actually got me through to an IRS agent who helped process my abatement request right away. For your case, talking to a live person is probably the fastest way to get this resolved since you have such a clear case with the address error.

I stand corrected about Claimyr. After posting my skeptical comment, I actually tried the service for a client case yesterday. I was absolutely shocked when I got through to an IRS agent in about 45 minutes (without having to do the waiting myself). The agent was able to process my client's penalty abatement request immediately. Would have taken me at least 3-4 attempts calling directly based on past experience. For anyone dealing with IRS issues like the original poster's address situation, being able to actually speak with someone makes all the difference. I've already recommended it to several colleagues who deal with IRS correspondence issues.

Just to add some info about interest abatement specifically - it's much harder to get than penalty abatement. I had a somewhat similar situation (though not overseas) and was able to get the penalties removed but not the interest. The key part of the law is IRC 6404(e), which allows for interest abatement only when there was an "unreasonable" error or delay by the IRS. Having your address wrong might qualify, but you need to document very clearly how you provided the correct address and how their error caused the delay. Make sure to specify both penalty AND interest abatement on your Form 843. Most people only get the penalties abated so be very explicit about requesting interest abatement too.

Has anyone had success requesting abatement online through the IRS account portal rather than mailing in Form 843? I thought I saw something about being able to do it electronically now but can't find clear instructions.

Based on your situation, you have an excellent case for both penalty and interest abatement. Since you maintained perfect compliance for years while overseas and the IRS clearly had your correct address on your filed returns, this is a textbook example of IRS error causing unnecessary penalties and interest. Here's what I'd recommend doing immediately: 1. **Get your account transcripts** - Download transcripts showing your filed returns with the correct address vs. the notices with the wrong address. This is your smoking gun evidence. 2. **File Form 843** - Request both penalty AND interest abatement. Be very specific about the interest abatement request citing IRC 6404(e) and explain how the IRS error in using the wrong address caused unreasonable delay. 3. **Document everything** - Include copies of your returns showing correct address, copies of notices showing wrong address, and evidence of your clean compliance history. The fact that you paid immediately upon discovering the issue actually strengthens your case - it shows good faith and that you're not trying to avoid payment, just seeking relief from charges that shouldn't have accrued. Don't be surprised if the penalty abatement gets approved quickly (you clearly qualify for First Time Penalty Abatement) but the interest takes longer. Interest abatement has a higher bar but your address documentation should meet the "unreasonable IRS error" standard.