IRS Penalty Abatement
Rates and standards last checked against IRS.gov: November 6, 2026
The IRS can remove penalties for filing or paying late. This guide explains first time abatement, reasonable cause, and how to ask, so you can find out if your penalty can come off.
Quick answer
How do I get an IRS penalty removed?
Ask for first time abatement if you had no penalties in the three prior tax years, have filed all required returns, and have paid or arranged to pay. If you don't qualify, ask for reasonable cause relief and show what kept you from filing or paying on time. You can ask by calling the number on your notice or by filing Form 843.
Who this applies to: Taxpayers charged failure-to-file, failure-to-pay or failure-to-deposit penalties.
What can change this answer
- First time abatement generally applies to one tax period only.
- Interest on the tax itself generally stays even when the penalty is removed.
- The failure-to-pay penalty keeps adding up each month until the tax is paid.
Recommended next step
Call the number on your penalty notice and ask whether you qualify for first time abatement.
Reviewed by Joseph Lancaster, 13+ years in tax resolution.
Key facts
| Item | Fact | Source |
|---|---|---|
| Penalties first time abate covers | Failure to file, failure to pay, failure to deposit | IRS: First time abate |
| First time abate clean history | No penalties in the 3 prior tax years | IRS: First time abate |
| First time abate filing and payment | All required returns filed; tax paid or a payment plan in place | IRS: First time abate |
| Failure-to-file penalty | 5% per month, up to 25% | IRS: Failure-to-file penalty |
| Failure-to-pay penalty | 0.5% per month, up to 25% | IRS: Failure-to-pay penalty |
| How to ask | Call the number on your notice, or file Form 843 | IRS: About Form 843 |
Compiled November 10, 2026 from the linked primary sources.
What is IRS penalty abatement?
Penalty abatement means the IRS removes or reduces a penalty it has charged. The most common ones are the failure-to-file penalty (5% of the unpaid tax for each month a return is late, up to 25%) and the failure-to-pay penalty (0.5% per month, up to 25%). Both can be removed if you qualify.
There are two main routes. First time abatement is an administrative waiver for people with a clean recent history. Reasonable cause relief is for people who had a real reason they couldn't file or pay on time. You can see what your penalties add up to with our penalty and interest estimator.
Do I qualify for first time abatement?
You may qualify if all three of these are true:
- Clean history:you didn't have to file a return before, or you had no penalties for the three tax years before the year you're asking about. An estimated tax penalty in those years doesn't count against you.
- Returns filed:you've filed all currently required returns, or have a valid extension.
- Tax paid or arranged: you've paid the tax due or set up a payment plan and are keeping up with it.
First time abatement covers one tax period
Source: IRS: First time abate
What counts as reasonable cause?
Reasonable cause relief is for when you used ordinary care but still couldn't file or pay on time. The IRS gives these as examples:
- Fire, casualty, natural disaster or other disturbance.
- Being unable to get the records you needed.
- Death, serious illness or incapacity of you or an immediate family member.
The IRS looks at what happened, when it happened, how it stopped you from filing or paying, and how quickly you acted once things improved. Being short of money, relying on someone else, or not knowing the rules usually isn't enough on its own. Keep records such as hospital papers, insurance claims or death certificates that back up your dates.
The standard is ordinary business care and prudence
Source: IRS: Reasonable cause
How do I ask the IRS for penalty relief?
- Call: use the number on the notice that shows the penalty. First time abatement can often be granted on the phone.
- Write: reply to the notice as it instructs, explaining which penalty and tax year you want removed and why.
- File Form 843:Claim for Refund and Request for Abatement. Use it to ask in writing or to get back penalties you've already paid.
If the IRS says no, the letter explains how to appeal. You can still look at other options, such as an Offer in Compromise if you can't pay what you owe.
Does the IRS remove interest too?
Interest charged on a penalty comes off when the penalty does. Interest on the tax itself generally stays, because the law doesn't allow it to be removed for first time abatement or reasonable cause. It can be reduced in narrow cases, such as when an IRS employee's unreasonable error or delay caused it.
Interest abatement for IRS errors and delays
Source: IRC § 6404
What to say when you call to ask for penalty relief
Call the number on the notice that shows the penalty. Have the notice, your tax year and your payment status in front of you.
- "I'm calling about the penalty on my notice for tax year [year]. I'd like to ask for penalty relief."
- "Can you check whether I qualify for first time abatement? I believe I had no penalties in the three years before."
- If first time abate doesn't apply: "I'd like to ask for reasonable cause relief. Here is what happened and when."
- "Will the interest on the penalty be removed too?"
- "Can you send me a letter confirming the relief, and tell me when my account will show it?"
- Write down the date, the employee's name or ID number, and what was agreed.
Frequently asked questions
What is IRS first time abatement?
First time abatement is an administrative waiver. The IRS can remove failure-to-file, failure-to-pay and failure-to-deposit penalties for one tax period if you had no penalties in the three prior tax years, have filed all currently required returns (or a valid extension), and have paid or arranged to pay the tax you owe. You don't need to give a reason.
What counts as reasonable cause for penalty relief?
Reasonable cause means you used ordinary business care and prudence but still couldn't meet your tax obligations. The IRS lists fire, casualty or natural disaster, being unable to get records, and the death, serious illness or incapacity of you or an immediate family member as examples. It looks at the facts, including when the problem happened and how quickly you acted once it ended.
How do I ask the IRS to remove a penalty?
Call the number on the notice that shows the penalty, or reply in writing as the notice instructs. You can also file Form 843, Claim for Refund and Request for Abatement. If you're asking for reasonable cause relief, include documents that support what happened.
Will the IRS remove interest too?
Interest on a penalty is reduced or removed when the penalty is reduced or removed. Interest on the tax itself generally stays, because the law doesn't allow it to be removed for first time abatement or reasonable cause. It can be reduced in limited cases, such as an unreasonable IRS error or delay under IRC § 6404(e).
Can I get first time abatement for more than one year?
Generally no. The IRS applies first time abatement to a single tax period. If you ask about several years, it usually applies to the earliest one, and you may need reasonable cause for the others.
What if the IRS says no?
The denial letter explains how to appeal. You can generally ask the IRS Independent Office of Appeals to review the decision, and you can send more documents if you have them.
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