What It Is
Penalty abatement is the IRS removing penalties it charged you, most often Failure to File and Failure to Pay. There are two main routes. First Time Abatement is available if you kept a clean compliance record for the prior three years and are current on your filings. Reasonable cause is for when something outside your control got in the way, such as serious illness, a death in the family, a disaster, destroyed records, or advice you reasonably relied on. Interest on the tax itself usually stays, but interest tied to a removed penalty comes off with it.
Is This You?
- You were charged Failure to File or Failure to Pay penalties
- You kept a clean record for the three years before
- Or something serious and outside your control caused the lapse
What You Can Do
These are the steps that move this forward. Work through them in order.
- Identify exactly which penalties were charged, from your notice or transcript
- Check whether you qualify for First Time Abatement, a clean prior three years
- If not, gather documentation for your reasonable cause
- Confirm you are current on required filings
- Decide the route: First Time Abatement or reasonable cause
- Make the request by phone, by letter, or on Form 843
Get the Penalty Abatement Checklist
The full checklist as a printable PDF, free. Enter your email and we will send it over.
Want the Full Walkthrough?
Penalty Abatement Guide
The request language that works, Form 843, and how to use First Time Abatement and reasonable cause together.
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