Summary
- The IRS may remove certain penalties through a process called penalty abatement.
- You may qualify through First-Time Abatement, reasonable cause, or statutory exception.
- Penalty abatement does not eliminate the original tax debt, but it can reduce thousands in added charges.
- Acting quickly improves your chances of approval and limits additional interest from accruing.
One of the most frustrating parts of owing back taxes isn’t just the debt itself, it’s the penalties and interest the IRS tacks on top. In some cases, these extra charges can double what you owe. Understandably, one of the most common questions we hear is:
“Can I get IRS penalties removed?”
The answer is yes, in certain circumstances. This process is called penalty abatement. Below, we explain how it works, who qualifies, and what you need to know before requesting it.
What Is Penalty Abatement?
Penalty abatement is the IRS’s way of reducing or removing penalties if you have a valid reason for noncompliance.
It does not erase the tax debt itself (or the interest on the tax), but it can dramatically reduce what you owe.
For example:
If you owed $10,000 and didn’t file or pay, penalties and interest could push the balance to $15,000 or more. If you qualify for abatement, those penalties could be reduced or removed, potentially saving you thousands of dollars.
Types of Penalties the IRS May Abate
The IRS can apply for more than 150 different types of penalties, but the most common penalties taxpayers face are:
- Failure-to-File Penalty – for not filing your tax return on time.
- Failure-to-Pay Penalty – for not paying taxes owed by the deadline.
- Accuracy-Related Penalty – for substantial errors on a return.
These penalties can range from 5% per month (failure-to-file) to 20% of your underpayment (accuracy penalty). (IRS Penalty Relief)
It adds up quickly, which is why early action matters.
Who Qualifies for Penalty Abatement?
There are three main paths to penalty relief:
- First-Time Penalty Abatement – If you’ve been compliant in the past, the IRS may grant a one-time forgiveness. To qualify for this, you must have no penalties in the prior three years, file all required returns, and pay (or arrange to pay) any taxes due. This is the most straightforward relief as it is a one-time administrative waiver that does not require proof of hardship.
- Reasonable Cause Relief – If you can show you had a legitimate reason for falling behind, the IRS may remove penalties. Examples include serious illness or death in the family, natural disaster or fire, inability to obtain records, and reliance on bad tax advice. The IRS reviews these cases individually and requires documentation to support your explanation.
- Statutory Exception – Rare, but possible if the IRS gave you the wrong information in writing.
What About Interest?
The IRS rarely removes interest. Interest continues to accrue until the balance is paid in full. However, if penalties are reduced, the interest charged on those penalties may also be reduced.
In other words, abatement can shrink both penalties and part of the interest but won’t erase all of it.
How Long Does Penalty Abatement Take?
Processing times vary. Simple First-Time Abatement requests made by phone may be resolved relatively quickly. Written reasonable cause requests can take several months, depending on IRS backlog and complexity.
During review, interest generally continues to accrue, which is why submitting a complete and well-supported request is critical.
Why Work with a Tax Attorney?
While some cases are straightforward, others require careful explanation and negotiation. That’s where legal help makes a difference. We know which penalties are most likely to be abated. We can present your case with the right documentation and legal arguments. We communicate with the IRS on your behalf, saving you the stress and confusion of navigating it alone while increasing likelihood of approval.
Conclusion
It is possible to remove IRS penalties, and in many cases, it’s worth thousands of dollars in savings. While interest is harder to eliminate, penalty abatement can make tax debt much more manageable.
If you’re overwhelmed by penalties, call McClure & Stewart today. Our attorneys can evaluate your case, request abatement on your behalf, and help you build a path to real resolution.
FAQS
Yes. Taxpayers can request abatement directly with the IRS. However, improperly presented requests may be denied. Professional guidance can improve your chances of success.
No. Penalty abatement only removes or reduces penalties. The original tax and most interest remain due.
First-Time Abatement is generally available once for a qualifying three-year compliance period. It is not automatically granted and must be requested.
No. Requesting penalty abatement does not automatically trigger an audit. It is a standard administrative process.
ou may be able to request reconsideration or submit additional documentation. In some cases, alternative resolution options such as installment agreements or offers in compromise may be more appropriate.
Resources:
MaKenna is the Administrative Assistant at McClure & Stewart Tax Resolutions, where she supports client communications and assists with day-to-day operations. Since joining the firm in March 2025, she has also contributed to the company’s marketing efforts, including writing blog content, managing social media, and helping coordinate advertising.
She is currently pursuing a degree in marketing, with a focus on content strategy and digital outreach. MaKenna is passionate about clear communication and helping clients feel informed and supported throughout the tax resolution process.