IRS Penalty Abatement.

Common penalties

• Failure to file: charged when a return is filed late.
• Failure to pay: charged when tax is paid late.
• Failure to deposit: charged to employers when payroll taxes are not deposited on time.
• Accuracy-related penalties after an audit or adjustment.

Administrative relief for a clean history

For years the IRS has offered First Time Abate to taxpayers with a clean compliance history for the prior three years, covering failure-to-file, failure-to-pay and failure-to-deposit penalties. In July 2026 the IRS announced it is phasing this into an automatic process (Automatic Exemption from Penalty) for eligible returns, so some taxpayers will no longer need to ask. During the transition, check the IRS page below to see how a given year is handled.

Reasonable cause

If administrative relief does not apply, penalties may be removed when you acted with ordinary business care and prudence but could not comply because of circumstances such as serious illness, a death in the immediate family, a natural disaster or records that were destroyed. Lack of money alone is generally not reasonable cause. A request needs a clear explanation and documents that show the dates and facts.

What penalty relief does not do

Penalty relief does not remove the tax itself. Interest on removed penalties is generally removed too, but interest on the tax remains. State and city agencies (Ohio Department of Taxation, RITA, CCA) have their own penalty rules and request processes.

Documents to gather

• The notices showing the penalties
• Records that show what happened and when (medical records, death certificate, insurance or disaster documentation)
• Your filing and payment history for the prior years

Please don’t send Social Security numbers, bank details or tax documents through the website chat or forms. We’ll arrange a secure way to share them.

How fees work

We quote a flat fee after the free consultation, once we know what the work involves, and agree the scope with you before any work starts. Amounts owed to the agency, and any agency fees, are paid to the agency, not to us. No one can promise a particular result: the agency decides, and our job is to present your case accurately and on time.

Frequently asked questions

Official sources

• IRS: Penalty relief due to First Time Abate or other administrative waiver
• IRS: Penalty relief
• IRS Publication 1660, Collection Appeal Rights

Last updated November 13, 2026 · General information, not tax or legal advice. Read the disclaimer.