What is IRS penalty Abatement

If you have tax debt to the IRS, you also owe interest and penalties. Failure to file or pay taxes may result in a penalty from the IRS. This added financial burden will increase your total tax liability (including interest and penalties). Those who meet the IRS’s requirements can get a break the first time they file their taxes. Most taxpayers must know the first-time IRS penalty abatement or its potential benefits in reducing tax liability.

IRS Penalty Abatement:

The term IRS penalty abatement is a willingness to reduce or eliminate penalties. You can get the IRS to reduce or even eliminate any penalty imposed on you. A penalty relief or penalty abatement is the same thing. Different types of penalties have additional requirements for filing an abatement request.

When Can You Get the IRS to Remove a Penalty?

If you had a good reason for paying or submitting your taxes late, you had “reasonable cause.” Individuals with tax problems due to circumstances beyond their control qualify for this relief. Taxpayers can claim reasonable cause for an extension of time to file or pay their taxes if they can show that they took reasonable steps under the circumstances. If carelessness or recklessness played a role, you wouldn’t be eligible for this kind of relief.

You may request an abatement of penalties for submitting, paying, or depositing late if you can show good grounds for the delay. Some penalties related to accuracy have a reasonable cause exception that you can request. Here are some examples of when a taxpayer may receive IRS penalty abatement based on good cause:

  • Tornadoes, hurricanes, wildfires, earthquakes, floods, and other natural disasters prevented you from making a payment or filing on time.
  • The taxpayer cannot obtain the necessary tax documents to complete their return for reasons beyond their control.
  • The taxpayer or a member of their immediate family could not file, make payments, or deposit funds because of illness, death, or being away from home.
  • There was a delay in processing a refund or deposit due to technical difficulties.
  • In other extenuating circumstances, the person could not file or pay their taxes.

IRS penalty abatement applications require applicants to provide explanations for their requests. Consult a tax expert for assistance. If you received a fine for any of the following reasons, you probably wouldn’t be able to claim fair cause:

  • Someone who handles your taxes may have filed or paid late. You should acquire documentation showing that your tax preparer met all deadlines and completed your return.
  • You need to comprehend the tax code. There is no excuse for paying or reporting your taxes late other than ignorance of the law.
  • No, you messed up. This may be a valid excuse if you can prove that you made an honest effort to follow the rules, but in most cases, you should check your return for errors before submitting it.
  • You simply cannot afford it right now. Lack of financial resources is not an acceptable excuse for nonpayment. However, you may be eligible for forgiveness under the currently uncollectable status.

Consultation with a tax attorney will provide additional information regarding reasonable cause. After hearing your story, they can tell you whether or not you should pursue this line of action.


Understanding your options for challenging an IRS penalty is crucial. They can help you determine if a request for the IRS to reduce or waive penalties has merit and then prepare the necessary documentation.

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