Penalty abatement means the IRS removes or lowers a penalty. The two main paths are a clean history of filing and paying on time, and a good reason like a fire, a serious illness or a death in the family.
Who it fits
People with late filing, late payment or late deposit penalties who have a clean past or a real reason.
- Who it fits
- Hit with penalties
- Cost
- No fee to ask. You can call the number on your notice or send Form 843.
- IRS form
- Form 843
What to know first
If you filed and paid on time for the past 3 years, the IRS may remove a failure to file, failure to pay or failure to deposit penalty. You have to ask.
Starting with 2025 returns, the IRS is moving to Automatic Exemption from Penalty. With a clean 3 year record, the penalty is not charged at all, and you don't have to ask.
Fires, disasters, not being able to get records, or a death or serious illness in your family may count. The IRS looks at each case.
Relying on a tax pro, not knowing the rules, simple mistakes, and lack of money alone usually do not count.
If the IRS removes a penalty, it also removes the interest tied to that penalty.
You can call the number on your notice. If the IRS can't approve it by phone, send Form 843.
Common questions
Do I have to name First Time Abate when I call?
No. The IRS says you don't need to name it or send papers. It checks your account to see if you meet the rules.
Source: IRS: First Time Abate and Automatic Exemption from Penalty
Can I get the estimated tax penalty removed for reasonable cause?
Usually not. The IRS says reasonable cause does not apply to some penalties, like the estimated tax penalty.
What if the IRS says no?
You can appeal a penalty relief decision. Your letter will explain the next steps.
Source: IRS: Penalty relief
Results depend on your situation. Not every case qualifies.
