Penalties can often be taken off.
Penalties can add a large share to what you owe, and many people qualify to have some of them removed. We find the strongest basis for relief, document it, and request it from the IRS or the state on your behalf.
Illustration only. Relief depends on your history and circumstances, and the IRS makes the final decision.
Is this you?
Penalty relief is one of the most overlooked options. It usually applies in one of these situations.
Penalties on your notice
A notice shows failure to file, failure to pay, or failure to deposit penalties added to the balance.
A clean record before this
You filed and paid on time in the years before, and this is the first time something went wrong.
Something outside your control
Illness, a death in the family, a disaster, or missing records kept you from meeting the deadline.
You followed IRS advice
You relied on written guidance from the IRS that turned out to be incorrect.
Three doors to the same relief.
The IRS offers penalty relief on three different grounds. Choosing the right one, and presenting it well, is most of the work.
First Time Abate
Based on your historyAn administrative waiver for taxpayers with a clean record. If you filed on time and had no significant penalties in the prior three years, the IRS may remove a failure to file, failure to pay, or failure to deposit penalty.
Applies to individual, business, and employment tax returnsReasonable Cause
Based on what happenedRelief when circumstances beyond your control kept you from filing or paying on time, even though you acted with ordinary care. The IRS decides case by case.
Needs a clear explanation and documentationStatutory Exception
Based on IRS adviceRelief when a penalty resulted from incorrect written advice you received from the IRS and relied on.
Needs a copy of the written adviceMany states offer their own penalty relief with different rules. We request state relief too.
What the IRS looks for.
For First Time Abate, the IRS looks at your compliance history. For reasonable cause, it looks at what happened and how you responded.
- The same type of return was filed on time for the prior three years.
- No significant penalties in those three years, other than estimated tax penalties.
- Any earlier penalties were removed for reasonable cause or IRS error.
- For reasonable cause, you acted with ordinary care once you were able to.
Three prior years filed on time with no significant penalties, and the current penalty may qualify.
- Fire, natural disaster, or civil disturbance
- Death, serious illness, or unavoidable absence
- Records you could not obtain
- System issues that delayed an electronic filing or payment
- Relying on a tax preparer
- Not knowing the rules
- A simple mistake
- Not having the money to pay
From notice to adjustment.
Five steps, with one point of contact the whole way through.
- 1
Free case review
We look at the notice and your situation to see which penalties apply and whether relief is realistic.
- 2
Pull the transcripts
We review your IRS account transcripts to confirm every penalty, the amounts, and your compliance history.
- 3
Choose the strongest basis
Reasonable cause, First Time Abate, or statutory exception. We often check reasonable cause first, so First Time Abate stays available for later.
- 4
Request relief
With your power of attorney, we request relief by phone, in a written statement, or with Form 843, with the documentation attached.
- 5
Follow through
We confirm the adjustment on your account. If relief is denied, we can take the request to IRS Appeals.
What relief does and does not do.
Knowing the limits up front helps set the right expectations.
The tax itself stays
Relief removes penalties. The underlying tax is still owed, and a payment plan can be set up for it.
Related interest follows
When a penalty is reduced or removed, the IRS automatically reduces the interest charged on that penalty.
Save First Time Abate for when it counts
Penalties removed under First Time Abate still count in your history, so it is best saved for when nothing else applies.
What we do for you.
An Enrolled Agent leads your case, with the same person handling it from the first call to the final result.
We find what applies
Many people pay penalties that could have been removed. We check every penalty on your account.
A documented request
Reasonable cause requests succeed on details. We write the explanation and gather the proof the IRS expects.
The right order of arguments
We decide which basis to use first, so your options stay open for the future.
Appeals if needed
If the IRS denies the request, we can take it to Appeals on your behalf.
About penalty relief.
The questions we hear most. Anything else, ask us during your free case review.
Can interest be removed too?
Interest on the tax itself is set by law and is generally not removed. When a penalty is reduced or removed, the interest charged on that penalty is reduced automatically.
Which penalties can be removed?
The most common are the failure to file, failure to pay, and failure to deposit penalties. Other penalties may qualify for reasonable cause relief depending on the situation.
Do I need to mention First Time Abate by name?
No. The IRS reviews eligibility when relief is requested. We still frame the request carefully so the strongest basis is considered.
What if the IRS says no?
You can appeal many penalty decisions through the IRS Independent Office of Appeals. We prepare and present the appeal for you.
The rest of the balance.
Removing penalties is often one part of the plan. These services handle what remains.
Installment Agreements & Payment Plans
Structured monthly plans negotiated with the IRS or the state.
View serviceRelated serviceIRS Notice & Letter Response
Clear answers and a timely response when an IRS or state letter arrives.
View serviceRelated serviceIRS Appeals & Tax Dispute Representation
Representation when you disagree with an IRS decision and want it reviewed.
View serviceFind out which penalties can come off.
Send us the notice and tell us what happened. The first case review is free and confidential.
Free case reviewNo obligationOne point of contact