What Is IRS Penalty Abatement? And Can You Qualify?
Penalties from the IRS can feel like insult added to injury—especially when you’re already struggling to get caught up. But what if you could have some (or all) of them removed? That’s where penalty abatement comes in.
What Is Penalty Abatement?
It’s the IRS’s way of offering relief for taxpayers who’ve shown good faith or had valid reasons for falling behind. It applies to failure-to-file, failure-to-pay, and other penalties.
Types of Relief
First-Time Abatement (FTA) – For those with a clean 3-year history
Reasonable Cause – Based on life events like illness, death, disasters
Administrative Waivers – Rare, but possible when the IRS system created the issue
How to Qualify
Timely filings for past years
Paid or arranged to pay the current balance
A documented, reasonable excuse (not just “I forgot”)
Why This Matters
Penalties can compound quickly. In some cases, we’ve helped clients reduce their liability by 30% or more through abatement alone.
Call to Action
Curious if you qualify? Download our IRS Penalty Abatement Cheat Sheet or book a one-on-one consult to build your relief case.
