The good news, there is a narrow path to cap what you owe at $500, if you follow the rules to the letter. That path is called Form 14402.
Bottom line, Form 14402 is how you ask the IRS to reduce unpaid §6702 penalties to $500 under Rev. Proc. 2012‑43. You must be fully compliant on other filings and payments first.
Key Takeaways
- What it does: Form 14402 requests a one‑time reduction of your unpaid §6702 penalties to $500, if you meet Rev. Proc. 2012‑43’s eligibility rules. It is not for refunds or arguing the merits.
- Payment mechanics: You must pay $500 in total. Most filers either, a, include at least $250 with the request and pay the rest later, or b, pay the $500 through a qualifying full‑payment installment agreement. If the IRS approves and the full $500 is paid, accrued interest on the §6702 penalties is abated.
- No appeals: Denials are not appealable to IRS Appeals. To challenge the penalty itself, you generally must pay and pursue a refund claim or use other authorized channels.
- Where to mail: Send Form 14402 to the Ogden Frivolous Return Program, “Attn: FRP, M/S 4450, 1973 N. Rulon White Blvd., Ogden, UT 84404.”
- Time limits: You must file before the Department of Justice serves a complaint to collect or reduce the §6702 assessment to judgment.
What Form 14402 Is, And What It Is Not
Form 14402 is the IRS’s prescribed way to request a reduction of any unpaid IRC §6702 penalties, which are usually assessed at $5,000 per penalty. If the IRS agrees you meet every condition in Rev. Proc. 2012‑43, it reduces your total unpaid §6702 penalties to $500 in the aggregate. This request does not challenge whether the penalty was properly assessed, and it is not a vehicle for refunds of amounts already paid.
A helpful nuance, if you cannot locate the fillable form, the IRS will accept a written statement that contains the same information the form requests, signed under penalties of perjury. For many readers, using the official form is simpler, but it is good to know a parallel option exists.
Who Typically Uses It
- You have one or more unpaid §6702 penalties, and you want them capped at $500 in total.
- You have filed all required federal returns for the prior six years, including returns for entities you control.
- You have paid all other federal taxes, penalties, and interest, or you are in a qualifying full‑payment installment agreement.
Eligibility, The 60‑Second Checklist
Use this quick screen. If any item trips you up, fix it before you file.
- You filed every required federal return for the past six years, including entities you control.
- You paid all other federal balances, or you entered a full‑payment installment agreement and you are in compliance.
- You are not in an open bankruptcy and your §6702 penalty is not dischargeable in that open case.
- You have not previously received a §6702 reduction.
- You do not have an active Offer in Compromise that includes §6702, unless it was withdrawn, returned, or rejected and not under appeal.
- You have not entered a partial‑payment installment agreement for the §6702 penalty.
- You have not executed a closing agreement under §7121 that includes §6702.
- You have not filed a new frivolous return or submission while your request is pending.
- If you are an employer, your federal employment tax deposits are current for the present quarter and prior two quarters.
- The United States has not served a DOJ complaint to collect or reduce your §6702 assessment to judgment.
Payment Rules Explained In Plain English
Think of the $500 as the final price tag for your §6702 penalties if your request is granted. You can get there in two common ways.
- Path A, include at least $250 with your request, then pay the balance to reach $500. Interest keeps running on the unpaid portion until it is fully paid. Once approved and the $500 is fully paid, the IRS abates accrued interest tied to those §6702 penalties.
- Path B, set up a full‑payment installment agreement and include the $500 within that plan. When you complete all required payments, the reduction is implemented and the interest is abated. A default voids the reduction.
Tip, if you can, pay the full $500 upfront with the request. If the IRS approves, interest is wiped away faster and your administrative to‑do list shrinks.
Quick Comparison, Payment Paths
| Option | Upfront Cash | Interest While Pending | When Interest Is Abated |
| At least $250 with the request | Lower | Continues on unpaid balance until $500 is fully paid | When approval is granted and the full $500 is paid |
| Full‑payment installment agreement | None at filing, payments per plan | Continues until you reach $500 within the plan | When $500 posts and you complete the plan |
Sources, Rev. Proc. 2012‑43 §§4.01(2) and 5.01.
Disqualifiers You Should Not Ignore
Several statuses block relief even if everything else looks good. Clear these before you file.
- Prior §6702 reduction, this is a one‑time opportunity.
- DOJ suit pending, once the government serves the complaint, you are out of time.
- Open bankruptcy, or a §6702 penalty that is dischargeable in that open case.
- Active Offer in Compromise that includes §6702, unless withdrawn, returned, or rejected without appeal.
- Partial‑payment installment agreement for §6702.
- Closing agreement under §7121 that already resolved §6702.
- New frivolous filing after you submit your request, even if you later withdraw it.
Employer‑Only Trap, Deposit Compliance
If you have employees, make sure your federal employment tax deposits are current for the present quarter and the prior two quarters before you file Form 14402. If they are not, fix that first.
Where To Send Form 14402
Mail your signed Form 14402, or a written statement with the same information, to the IRS Frivolous Return Program at this address:
Internal Revenue Service Attn: FRP, M/S 4450 1973 N. Rulon White Blvd. Ogden, UT 84404.
This Ogden address is consistently referenced across the IRS’s Internal Revenue Manual and FRP routing guidance, and it is current for calendar year 2026. If you include a check, the IRS will apply it to §6702 liabilities. Keep copies of everything you mail.
Step‑By‑Step, How To Complete And Send Form 14402
Follow this sequence to avoid rework and delays.
1.Gather identifiers and notices
- Your legal name, TIN, address, phone, and email as they appear on IRS records.
- IRS notices that show the §6702 assessment, the form numbers, and the tax years involved.
- Your requested reduction amount, remember the cap is $500 in total.
- Confirm eligibility exactly
- Walk through the checklist in this guide and Rev. Proc. 2012‑43, sections 4 and 5.
- Fix any missing returns or unpaid balances, or enter a qualifying full‑payment installment agreement.
- If an OIC is open, withdraw it first or wait for it to be returned or rejected without appeal.
- Decide your payment path
- Include at least $250 with the request and plan for the remainder, or
- Use a full‑payment installment agreement and include the $500 within that plan.
- Prepare and sign
- Complete Form 14402 or draft a written statement that mirrors it, list penalty periods and amounts, and sign under penalties of perjury.
- Mail to Ogden FRP
- Use the FRP address above. If you are sending a check, include it in the same envelope and note the amount in your cover letter for your records.
What Happens After You File
- The FRP unit reviews eligibility under Rev. Proc. 2012‑43.
- If approved and the $500 is paid, the IRS abates accrued interest on the §6702 liabilities.
- If you sent $250 but not the full $500, you remain liable for the balance and interest until paid.
- If you used a full‑payment installment agreement, the reduction takes effect once you complete the plan, and a default voids the reduction.
Reminder, penalty‑reduction denials are not appealable to IRS Appeals. If you want to contest the underlying penalty, different procedures apply, usually after full payment.
Real‑World Example
A taxpayer with three unpaid §6702 penalties totaling $15,000 cleaned up six years of filings, paid all other balances, and applied with Form 14402. They enclosed $500 with the request. The IRS approved the reduction, cut the §6702 total to $500, and abated accrued interest once the $500 posted. The taxpayer did not recover amounts paid before filing, which is normal, since reductions do not generate refunds.
Documentation Discipline, Your Insurance Policy
You will sign Form 14402 under penalties of perjury, so your package should make it easy for the FRP team to validate your answers. Include clear references to each notice, each tax year, and the exact penalty periods. If you run a firm and prepare these requests for clients, standardized workpapers, consistent naming, and a simple cover letter checklist reduce review time and prevent back‑and‑forth with the IRS.
In places where it genuinely helps, teams use partners like Accountably to keep tax workpapers standardized, review‑ready, and complete, so requests like Form 14402 do not stall for avoidable gaps. Use help only where it adds control and speed, not as a shortcut.
Common Mistakes And How To Avoid Them
- Filing while out of compliance on other returns or balances. Fix filings for the prior six years and pay or arrange full payment before you submit.
- Sending less than $250 without a qualifying full‑payment installment agreement. That will not meet the payment rule.
- Thinking a partial‑payment installment agreement qualifies. It does not. You need a full‑payment plan.
- Trying to use Form 14402 to argue that the penalty is invalid. It is strictly a reduction tool, not a merits appeal.
- Missing the time limit after DOJ serves a complaint. File before that happens.
- Employers overlooking deposit compliance. Bring deposits current for the present and prior two quarters.
Quick Reference Tables
Eligibility vs. Disqualifiers
| Item | You Qualify When | You Are Disqualified When |
| Filing compliance | All required returns filed for past 6 years, including controlled entities | Any required return missing |
| Payment status | All non‑§6702 liabilities fully paid, or full‑payment IA in place | Partial‑payment IA, unpaid balances without a full‑payment IA |
| Prior actions | None | Prior §6702 reduction, §7121 closing agreement that includes §6702 |
| Offers | No active OIC that includes §6702 | OIC still open or under appeal |
| Court status | No DOJ suit served | DOJ complaint served |
| Bankruptcy | No open case involving dischargeable §6702 | Open bankruptcy or penalty dischargeable in that case |
| New filings | No new frivolous submission | New frivolous submission after request |
| Employers | Deposits current this quarter and prior two | Deposits not current |
Sources, Rev. Proc. 2012‑43 §4.
Mailing And Routing
| What | Where |
| Form 14402 or equivalent statement | IRS, Attn: FRP, M/S 4450, 1973 N. Rulon White Blvd., Ogden, UT 84404 |
| If payment enclosed | Same envelope, keep copies for your records |
Source, IRS IRM routing to Ogden FRP, M/S 4450.
FAQs
Can I file one Form 14402 for multiple §6702 penalties?
Yes. You can request reduction of more than one §6702 penalty in a single submission, as long as you list the periods and amounts clearly and meet all eligibility rules for each.
Can I appeal a denial to IRS Appeals?
No. Denials are not appealable to Appeals under Rev. Proc. 2012‑43. To contest the penalty itself, you typically must pay and pursue a refund claim or use other authorized procedures where jurisdiction exists.
Do I have to send a check, or can I use a payment plan?
You have two options. Include at least $250 with the request and pay the rest to reach $500, or use a full‑payment installment agreement that includes the $500. A default voids the reduction.
When does the IRS abate interest?
If your request is approved and the $500 is fully paid, either upfront or through an eligible installment agreement, the IRS abates accrued interest on the §6702 liabilities.
What if I cannot find the Form 14402 PDF?
The IRS treats a signed written statement with the same information as the form. Many practitioners still prefer using the form when available, but you have a fallback.
I received Letter 3176C. Is Form 14402 relevant?
Letter 3176C is often associated with §6702 issues. The IRS’s page for that letter confirms the possibility of reduction under §6702(d) and acknowledges written statements that mirror Form 14402.
Can I recover amounts I paid before filing Form 14402?
No. The reduction applies to unpaid §6702 penalties, and the IRS will not refund amounts paid before the request date.
How recent is this mailing address and guidance?
The Ogden FRP address and routing were confirmed in IRS Internal Revenue Manual updates reviewed in late 2025 and 2026. Always check for updates, but this is current as of January 17, 2026.
What If You Are Not Eligible Right Now
If an OIC is pending, withdraw it first or wait for a return or rejection without appeal. If filings are missing, file them, including entity returns you control. If you are on a partial‑payment plan, convert it to a full‑payment agreement if feasible, then recheck eligibility. If a DOJ complaint has already been served, consult a tax attorney immediately, since Form 14402 will not be available.
Pro move, do not submit Form 14402 until your filing and payment house is in order. One clean, complete package beats three rushed submissions every time.
Editor’s Notes, Search Intent And Compliance
- This guide targets readers searching for “Form 14402,” “IRS Form 14402,” “IRC 6702 penalty reduction,” and “frivolous submission penalty.”
- It answers the fast questions first, what it does, who qualifies, payment rules, where to mail, then goes deeper with eligibility, disqualifiers, and FAQs.
- Citations reflect the IRS Revenue Procedure and Internal Revenue Manual pages reviewed through January 17, 2026. Always confirm if your facts change.
Light CTA For Help, Only Where It Adds Value
If you are a taxpayer, consult a qualified tax professional before you file. If you are a CPA, EA, or firm ops lead building repeatable documentation and review workflows for requests like Form 14402, make sure your internal SOPs, workpapers, and naming standards are tight. That discipline shortens IRS review cycles and prevents avoidable denials. If you need a vetted offshore delivery layer to keep packages clean and on time, consider adding structured help only where it improves control and quality.
Disclaimer
This article is for education, not legal or tax advice. Tax facts and mailing details reflect IRS materials reviewed as of January 17, 2026, which can change. For personalized guidance, consult a licensed tax professional.
Sources
- Rev. Proc. 2012‑43, one‑time reduction of unpaid §6702 penalties to $500, eligibility, payment, time limits, disqualifiers, consideration and interest abatement.
- IRM 8.11.8, Appeals guidance on §6702, no administrative appeal for reduction requests.
- IRM 20.1.10, §6702 overview and the role of Form 14402.
- IRM 25.25.10, Frivolous Return Program operations and payment requirements, including the $250 minimum in most cases.
- IRM routing to Ogden FRP, M/S 4450, confirmed address for FRP mail.
- IRS Letter 3176C page, confirms reduction possibility and acceptance of a written statement mirroring Form 14402.
Final Checklist Before You Mail
- Eligibility met for every item in Rev. Proc. 2012‑43 §4
- Six years of returns filed, including entities you control
- All non‑§6702 balances paid or in a full‑payment IA
- Payment path chosen, at least $250 with the request or $500 within a qualifying plan
- Signed declaration under penalties of perjury
- Clear indexing of penalty periods and notices
- Copy package retained, tracking used for mailing
- Addressed to FRP, M/S 4450, 1973 N. Rulon White Blvd., Ogden, UT 84404