IRS Penalty Abatement
in Indiana

Common penalties eligible for abatement include the failure-to-file penalty (5% per month up to 25%), the failure-to-pay penalty (0.5% per month), and accuracy-related penalties. The IRS also has a First Time Abatement (FTA) policy that waives penalties for taxpayers with a clean compliance history.

First Time Abatement is an IRS administrative waiver available to taxpayers who have no penalties for the prior 3 years and are currently compliant. It's one of the most straightforward penalty relief options and does not require proof of a specific reason. Many Indiana taxpayers qualify without knowing it.

The IRS has provided penalty relief for periods affected by COVID-19 and declared disaster areas. Indiana taxpayers affected by FEMA-declared disasters may also qualify for automatic penalty and interest relief under the IRS's disaster relief program.

Penalty abatement reduces your balance by removing specific penalty charges, but does not eliminate the underlying tax or interest. However, in cases with large accrued penalties, abatement can significantly reduce the total balance — sometimes by 20–30% or more.

Penalty abatement can be requested by phone, letter, or IRS Form 843. We prepare the strongest possible abatement request with full documentation of your reasonable cause. The IRS can deny requests that are incomplete or poorly supported — professional preparation significantly improves approval rates.