IRS Penalty Abatement Help
Ask the IRS to remove your penalties
IRS penalties for filing or paying late can add up fast. In some cases the IRS will reduce or remove them, through first-time abatement, reasonable cause or a statutory exception. Our Enrolled Agents prepare and pursue these requests for individuals and businesses, backed by more than 55 years of combined experience.
Enrolled Agents IRS-certified
All 50 states Nationwide
55+ years Team experience
What is IRS penalty abatement?
Penalty abatement is a request that the IRS reduce or remove a penalty it has charged, most often for filing late, paying late or missing a payroll tax deposit. The IRS offers three types of relief: first-time abatement and other administrative waivers, reasonable cause, and statutory exceptions.
You can ask by calling the toll-free number on your IRS notice, with the notice and your reasons ready. If the IRS can't approve it by phone, you request it in writing, often on Form 843. If a penalty is reduced or removed, the IRS automatically reduces the related interest. Source: IRS, Penalty relief.
Interest rule
Interest and penalties are different charges. If a penalty is reduced or removed, the IRS automatically reduces the related interest. It doesn't remove other interest for reasonable cause or first-time relief.
How can I get penalties removed?
30 days
How long you generally
have to appeal a denied request
Relief generally comes from:
• first-time abatement, an administrative waiver for a clean three-year compliance history;
• reasonable cause, when ordinary care and prudence still couldn't prevent a late filing or payment, such as a disaster or serious illness;
• a statutory exception, such as relying on incorrect written advice the IRS gave you in answer to a written request;
• automatic exemption from penalty, which covers eligible 2025 tax year and later returns with three years of timely compliance; or
• an appeal to the IRS Independent Office of Appeals if the IRS denies a failure-to-file or failure-to-pay request.
First-time abatement doesn't cover returns filed once or infrequently or the daily delinquency penalty. Source: IRS, Administrative penalty relief.
IRS PENALTY RATES AT A GLANCE
Three numbers behind the bill
5%
Late filing / month
0.5%
Late payment / month
25%
Cap, filing or paying
IRS Penalties
The failure-to-file penalty is 5% of the tax due for each month or part of a month, and the failure-to-pay penalty is 0.5% a month. Each is capped at 25%. When both apply, the filing penalty is reduced by the payment penalty. Failure-to-deposit penalties run from 2% to 15%, depending on how late the deposit is.
Which type of relief applies?
First-time abatement and reasonable cause work differently, and the IRS may apply the first if you ask for the second:
First-time abatement
A waiver based on your compliance history, not on why the penalty happened. You generally filed the same return on time for the prior three years, with no penalties then (other than an estimated tax penalty) or only ones later abated. You don't have to explain the cause.
Reasonable cause
Decided case by case. You show ordinary care and prudence, yet you still couldn't file or pay on time, such as after a fire, disaster, serious illness or death, or lost records. Lack of funds alone or relying on a preparer generally isn't enough (see IRS, Penalty relief for reasonable cause).
How we handle a penalty abatement case
1. Review and verify. With your authorization (IRS Form 2848), we pull your IRS transcripts and check which penalties were assessed, for which periods, your compliance history and any unfiled returns.
2. Choose the right basis. We match your facts to first-time abatement, reasonable cause or a statutory exception, gather documentation, and make the request by phone or in writing on Form 843.
3. Follow through. We track the IRS response and, if a request is denied, we review your appeal options before the deadline.
What to have ready: any IRS penalty notices (with the tax year and penalty type), copies of the returns involved, proof of filing and payment dates, and records that support your reason, such as medical, insurance or disaster documents. States have their own penalty relief rules, and we handle state penalties too.
Which resolution fits your situation?
Abatement doesn't reduce the tax itself. If you can't pay in full, an installment agreement can help limit future penalties.
If the tax itself is more than you can realistically pay, an Offer in Compromise may settle the balance for less than you owe, if you qualify.
If the IRS has already taken money from your bank account or wages, see our levy help. If a federal tax lien is blocking a sale or a loan, see our lien help.
Penalty abatement questions
Common questions about first-time abatement, reasonable cause and appeals.
What penalties can the IRS remove? The IRS may reduce or remove failure-to-file, failure-to-pay, failure-to-deposit, accuracy-related and information return penalties, among others, if you qualify. It decides each request on its facts, and no outcome is guaranteed.
Who qualifies for first-time abatement? Generally, you filed the same type of return on time for the prior three years and had no penalties then (other than an estimated tax penalty), or they were later abated. It covers failure-to-file, failure-to-pay and failure-to-deposit penalties.
Does the IRS remove interest too? Interest is charged on penalties. If the IRS reduces or removes a penalty, it automatically reduces the related interest. It otherwise reduces interest only in limited cases, such as an unreasonable IRS error or delay.
How do I ask the IRS to remove a penalty? Call the toll-free number on your IRS notice with the notice, the penalty and your reasons ready. If the IRS can't approve it by phone, send a written request or Form 843. You don't have to name first-time abatement; the IRS checks your account for it.
What if the IRS denies my request? You may be able to request a conference with the IRS Independent Office of Appeals, generally within 30 days of the rejection letter, so check the deadline on your letter. The Taxpayer Advocate Service can also help if you can't resolve it yourself.