Requesting Penalty Abatement

What is Penalty Abatement?

Penalty abatement is the removal or reduction of penalties assessed by the IRS. The IRS may grant penalty relief if you have a reasonable cause for not meeting your tax obligations or if it's your first offense.

Types of Penalties That Can Be Abated

• Failure to file penalty
• Failure to pay penalty
• Failure to deposit penalty
• Accuracy-related penalty
• Estimated tax penalty

Reasons for Penalty Abatement

The IRS may grant penalty relief for:

• Reasonable Cause: When you exercised ordinary business care but couldn't comply
  • Death, serious illness, or unavoidable absence
  • Fire, casualty, natural disaster, or other disturbance
  • Inability to obtain records
  • Mistake was made based on incorrect written advice from the IRS
• First-Time Penalty Abatement: For taxpayers with a clean compliance history
• Administrative Waiver: When the IRS determines that imposing the penalty would be against equity and good conscience

How to Request Penalty Abatement

1. Determine which type of relief you qualify for
2. Write a detailed explanation of your situation
3. Submit your request with supporting documentation
4. Wait for the IRS to review your request
5. If denied, you can appeal the decision

Tips for Success

• Be honest and thorough in your explanation
• Provide supporting documentation
• Act quickly - the sooner you request abatement, the better
• Consider working with a tax professional
• If denied, don't give up - you may have other options