Penalty Abatement

What is penalty abatement?

Penalty abatement is an IRS program that allows you to request the removal or reduction of penalties on late-filed or late-paid taxes. It applies if you can show reasonable cause, such as serious illness, natural disasters, or other unavoidable circumstances for not meeting tax obligations on time.

Why is penalty abatement useful?

Penalty abatement helps by:

• Reducing or eliminating penalties, which can add 5% per month for late filing (up to 25%) or 0.5% per month for late payment, plus interest.
• Lowering the total tax debt, making it easier to manage payments.
• Providing relief for honest mistakes or hardships, keeping your finances on track.

The IRS approves abatement requests on a case-by-case basis, requiring clear documentation and justification.

Options for requesting penalty abatement

You can pursue penalty abatement in several ways:

• Do it yourselfSubmit a written request to the IRS, explaining your situation and providing supporting documents, such as medical records or proof of a natural disaster. This requires understanding IRS criteria, organizing evidence, and ensuring your explanation meets their standards. Errors or incomplete submissions can lead to denial.
• Work with the IRS directlyContact the IRS by phone or mail to request abatement, answering questions and supplying details. This demands precise preparation and familiarity with IRS policies, which can be difficult without guidance.
• Hire a tax professional (recommended)A professional is the best way to request penalty abatement. They evaluate your circumstances, prepare a compelling case with the required documentation, and advocate with the IRS. If your tax debt includes penalties from multiple years or complex issues, a professional can also explore additional options to resolve the situation.

Last updated October 15, 2026.