What steps can I take to resolve IRS Penalties?

Check if you qualify for First-Time Abatement (no penalties in prior 3 years) Call the IRS at 1-800-829-1040 to request FTA by phone If denied, write a Reasonable Cause letter with supporting documentation Appeal if the IRS denies your request

Tax Problem Guide

IRS Penalty Abatement — Remove IRS Penalties You Shouldn't Owe

IRS penalties can add 20–50% to your tax bill — but the IRS routinely removes them for first-time offenders or those with genuine hardships. There are two main ways to request penalty removal: First-Time Abatement and Reasonable Cause.

How the IRS Handles This

The IRS assesses failure-to-file (5%/month) and failure-to-pay (0.5%/month) penalties automatically. They also assess accuracy penalties on understated tax.

DIY Steps to Resolve This

1
Check if you qualify for First-Time Abatement (no penalties in prior 3 years)
2
Call the IRS at 1-800-829-1040 to request FTA by phone
3
If denied, write a Reasonable Cause letter with supporting documentation
4
Appeal if the IRS denies your request

Get the Complete DIY Guide for $1

The above is an overview. Our full guide includes IRS forms, template letters, phone scripts, and step-by-step procedures — everything you need to resolve this yourself.

Penalty Abatement Request Letter

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