Should I dispute the penalty by letter now, or pay first and use Form 843 later?
I keep seeing two different tracks described online. One is to write back to the notice and ask the IRS to reconsider the penalty. The other is to pay and then file Form 843 for a refund or abatement. What I cannot tell from casual advice is whether these are interchangeable choices or whether they belong to completely different stages of the process.
I do not want to jump into the wrong lane out of impatience. If the IRS expects a notice dispute first and Form 843 later only after payment, I want to respect that sequence instead of turning the file into a procedural mess.
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