Ways to Get IRS Penalty Relief: First-Time Abatement, Valid Reasons, and Special Cases

The IRS’s First-Time Abatement program can waive penalties for taxpayers with a good history while other relief options include showing a valid reason for missing deadlines.

Penalty Relief Options

The IRS offers the First-Time Abatement program which forgives penalties for taxpayers with a good payment history. This program can waive penalties for up to three years.

Getting Relief

Show the IRS a good reason for missing deadlines, such as illness, emergencies, or unexpected events. This might get you penalty relief.

Requesting Relief

Follow the notice’s instructions or fill out Form 843 to ask for relief. If denied, appeal the decision and take it to court if needed. The IRS also offers relief in special cases like natural disasters or delays. You may also reduce or waive interest on unpaid taxes under certain circumstances.

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(photo: The W Tax Group)

The IRS offers penalty relief through the First-Time Abatement program for taxpayers with a good record. If you missed deadlines due to valid reasons like illness, you can request relief using Form 843. If denied, you can appeal and even take it to court. Relief is also available for special situations like natural disasters and you might be able to reduce or waive interest on unpaid taxes in certain cases, according to the report of The Street.

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