How to Request Penalty Abatement

Asking the IRS to remove a penalty is called requesting abatement. It is an established process, and the IRS says some requests can be handled by phone. The difference between a request that works and one that does not often comes down to choosing the right type of relief, giving the facts clearly and meeting the deadlines. This page walks through the process from the notice to an appeal.

Step 1: Read the notice

Find the penalty name, the tax period, the amount and the response date. Several penalties can appear on one notice, so list each one. Check the facts the IRS used, such as the date it received your return or payment. Sometimes the penalty is wrong because a payment was posted late or a return was recorded under the wrong period, and fixing that ends the penalty. Our guide on how to read an IRS notice helps with unfamiliar language.

Pay the tax if you can, even while you dispute the penalty, because interest and the failure-to-pay penalty keep growing on unpaid tax. See IRS interest.

Step 2: Decide which type of relief fits

The IRS describes three kinds of relief, and you can often consider them in this order:

1. Correction of an IRS error, and statutory exceptions. These include incorrect written advice from the IRS that you relied on in response to your written request, a paper return or payment mailed on time with correct addressing and postage, an e-filed return that was timely and processable, and federal disaster areas or combat zone service.
2. Administrative waivers. First-time penalty abatement and the automatic exemption for newer years are examples. They depend on your compliance history, not on a reason.
3. Reasonable cause. You explain why you could not comply despite ordinary care. See reasonable cause penalty relief.

The estimated tax penalty has separate relief rules. See the estimated tax penalty page.

Step 3: Gather your facts and documents

• The notice and the date you received it
• Proof of filing or payment, such as e-file acknowledgments, mailing receipts or cancelled checks, front and back
• Evidence of the reason, such as hospital or court records, a doctor's letter with start and end dates, disaster documentation, and letters you sent and received
• Your account transcripts, to confirm your history. See tax transcripts.

Step 4: Call the number on the notice

Some requests can be approved by phone. Have the notice, the penalty you want removed, your reasons and your documents ready. You do not need to say the words "first-time abatement" if you qualify, because the IRS reviews the account. If you say you want reasonable cause relief and the representative finds you qualify for first-time abatement during the call, the IRS applies that. Write down the date, the representative's ID number and what you were told.

If you did not receive a notice, use the IRS telephone assistance line for your type of return.

Step 5: Write if the call does not resolve it

If a phone request cannot be approved, make the request in writing. Use Form 843 or a signed letter. The IRS says Form 843 can be used to request abatement of certain penalties and interest, and the current revision is dated December 2024. Follow the Form 843 instructions for the address, or use the address on the notice.

A written request should include:

1. Your name, address, taxpayer identification number and the tax period
2. The notice number and date, and the penalty you want removed
3. A clear statement of what happened, with dates
4. How it prevented you from filing, paying or depositing on time
5. What you did to comply and how quickly you fixed the problem
6. A list of attached documents
7. Your signature and the date. If a business, the signature of someone with authority

Keep the letter factual and short. Avoid blaming the IRS unless you have evidence of an IRS error. Send copies, keep the originals, and use a method that gives you proof of delivery.

Example (hypothetical). A penalty notice dated July 8 shows a failure-to-file penalty for the prior year. You call on July 10. The representative cannot approve it. On July 12 you mail a signed letter with the notice, a copy of your e-file acknowledgment showing a timely transmission, and a copy of the rejection message. That evidence supports a statutory exception for an e-filed return that was timely and processable or was resent within 10 days of rejection.

Step 6: Consider a representative

You can authorize a professional to handle the process using Form 2848. See power of attorney. A representative can speak with the IRS, send documents and track the response.

Step 7: If the IRS denies the request

The denial letter should explain your appeal rights. The IRS says you generally have 30 days from the date of the rejection letter to file a request for an appeal, and the letter may give a different date. The IRS lists conditions: the penalty is a failure-to-file or failure-to-pay penalty, you sent a written request to remove it, the IRS denied it and the letter states your appeal rights. Include proof of timely filing or payment if you have it, or a detailed explanation. See IRS Appeals. Other help includes the Taxpayer Advocate Service and low income taxpayer clinics.

If you already paid the penalty

You can still ask for a refund. Form 843 is the IRS form for claims for other taxes and penalties. The general time limit to claim a refund is the later of 3 years from the date you filed the return or 2 years from the date you paid the tax, so do not wait. If the IRS removes a penalty, it also removes the interest charged on it.

How we can help

We can identify which relief fits, pull the transcripts that show your history, assemble the documents, write the letter or complete Form 843, and handle the follow-up. For businesses, we also check how deposits and returns were applied. See our IRS representation service or contact us. We do not promise any penalty will be removed.

Frequently asked questions

General information only, not tax, legal or accounting advice for your situation. Rules, limits and deadlines change; confirm the current rules with the official source or a qualified professional before you act. Reading this page does not create a professional relationship with CPA Tax Payroll and Accounting Corp.