IRS Penalty Notice Help
IRS penalties are added to your tax debt when you file late, pay late, fail to file, or underreport income. Many penalties can be reduced or eliminated if you qualify for penalty abatement.
Respond to Penalty Notice
Upload your notice for penalty abatement guidance and response preparation
Prepare My IRS ResponseCommon IRS Penalties
- Failure to File Penalty – 5% per month (up to 25%) of unpaid taxes for late-filed returns
- Failure to Pay Penalty – 0.5% per month of unpaid taxes
- Accuracy-Related Penalty – 20% of the underpayment due to negligence or substantial understatement
- Estimated Tax Penalty – Charged if you did not pay enough estimated taxes throughout the year
- Late Payment Penalty – Assessed when you do not pay by the return due date
When You Can Request Penalty Abatement
Reasonable Cause for Penalty Abatement
- Death, serious illness, or unavoidable absence
- Fire, natural disaster, or civil disturbance
- Inability to obtain records
- IRS error or incorrect written advice from the IRS
- Reliance on incorrect advice from a tax professional
First-Time Penalty Abatement
If you have a clean compliance history, you may qualify for administrative penalty relief for the first time you incur a failure-to-file, failure-to-pay, or failure-to-deposit penalty.
Requirements:
- No penalties in the prior 3 tax years
- All required returns have been filed (or valid extension filed)
- You have paid or arranged to pay any tax due
How to Request Penalty Abatement
- Call the IRS phone number on your notice and request first-time penalty abatement (if eligible)
- Submit written request via Form 843 (Claim for Refund and Request for Abatement)
- Explain reasonable cause in detail with supporting documentation
- Send via certified mail with return receipt requested
What If Your Request Is Denied?
If the IRS denies your penalty abatement request:
- You can request reconsideration with additional documentation
- You can appeal the decision if you disagree with the IRS's determination
- Consider whether you have grounds for an appeal based on reasonable cause
Penalties You Cannot Abate
- Fraud penalties
- Penalties for intentional disregard of rules
- Penalties where you have already used first-time abatement within the 3-year period
Disclaimer: This tool provides informational assistance only and does not constitute legal or tax advice. For complex tax matters, consult a licensed tax professional or attorney.