How to Get IRS Penalties Removed

The short version. A large part of many IRS balances is penalties, and they can be reduced or removed. The two main routes are First Time Abate, a nearly automatic removal if you have a clean recent history, and reasonable cause, where you show a legitimate reason like serious illness or a disaster. Interest is harder to remove and is usually abated only when it resulted from an IRS error or delay.

The two main paths

Most penalty relief comes through one of these two doors. Knowing which fits saves time.

First Time Abate

Nearly automatic if you have no penalties in the prior three years.
Covers failure to file and failure to pay penalties.
You can request it by phone or in writing.
Often the fastest relief available.

Reasonable cause

For a legitimate reason: serious illness, a death, a disaster, lost records.
You explain the circumstances and provide support.
Judged case by case.
Interest is rarely removed unless the IRS caused the delay.

What you can do about it

Each is something you request and the IRS reviews.

Request penalty abatementThrough First Time Abate or reasonable cause, depending on your history.
Handle the underlying balanceRemoving penalties is easier alongside a plan for the tax.
See your options on the full balanceIf the tax itself is more than you can pay.
Check which path fitsYour recent filing history decides whether First Time Abate is available.

Penalties come off more often than people expect.

If penalties swelled your balance, there may be a fast way to cut them. Send your case in for a free review and we will tell you which path fits.

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Related IRS notices

Not your notice? Look yours up on the home page.

The legal basis

What this is grounded in

Failure to file and failure to pay penalties: Internal Revenue Code section 6651.
First Time Abate is an administrative waiver under IRS penalty policy, IRM 20.1.1.
Reasonable cause relief is judged on the facts, with standards in section 6651 and related rules.
Interest is abated only in limited cases, generally IRS error or delay: Internal Revenue Code section 6404.

These are the controlling Internal Revenue Code sections and Internal Revenue Manual parts. Links go to the live IRS.gov pages so you can confirm every point yourself.

Free review

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