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IRS First-Time Penalty Abatement: What to Know
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do not influence our editors’ opinions or ratingsWhat Is the IRS First-Time Penalty Abatement?
The first-time penalty abatement lets qualifying taxpayers reverse the penalties for not filing a tax return or paying on time.
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Editor & Content Strategist
23 years of experience Expertise Taxes Small business Social Security and estate planning Home services RIATina Orem is an editor and content strategist at NerdWallet. Prior to becoming an editor and content strategist, she covered small business and taxes at NerdWallet. She has a degree in finance, as well as a master's degree in journalism and an MBA. Previously, she was a financial analyst and director of finance at public and private companies. Tina's work has appeared in a variety of local and national media outlets.
Tina Orem is an editor and content strategist at NerdWallet. Prior to becoming an editor and content strategist, she covered small business and taxes at NerdWallet. She has a degree in finance, as well as a master's degree in journalism and an MBA. Previously, she was a financial analyst and director of finance at public and private companies. Tina's work has appeared in a variety of local and national media outlets. Published in Editor & Content Strategist + more + more
Head of Content, New Verticals
11 years of experienceChris Hutchison helped build NerdWallet's editorial operation and has directed coverage across banking, investing, taxes and insurance. He now leads a team exploring new verticals. Before joining NerdWallet, he was an editor and programmer at ESPN and an editor at the San Jose Mercury News.
Chris Hutchison helped build NerdWallet's editorial operation and has directed coverage across banking, investing, taxes and insurance. He now leads a team exploring new verticals. Before joining NerdWallet, he was an editor and programmer at ESPN and an editor at the San Jose Mercury News. Head of Content, New Verticals + more + moreThe IRS assesses billions in tax penalties each year, but not everyone knows the agency is sometimes willing to change its mind and reverse certain tax penalties.
The IRS assesses billions in tax penalties each year, but not everyone knows the agency is sometimes willing to change its mind and reverse certain tax penalties.The first-time penalty abatement allows certain taxpayers to remove a penalty from their record or get a refund for one they already paid.
The first-time penalty abatement allows certain taxpayers to remove a penalty from their record or get a refund for one they already paid.Which penalties qualify for first-time penalty abatement?
Which penalties qualify for first-time penalty abatement?There are generally three types of penalties that the IRS considers for abatement: failure to file, failure to pay and failure to deposit.
There are generally three types of penalties that the IRS considers for abatement: failure to file, failure to pay and failure to deposit.The failure-to-file penalty is a fee that the IRS imposes when you owe taxes and your return was not filed by the deadline (that’s mid-April for most people who didn’t file for an extension).
The failure-to-file penalty is a fee that the IRS imposes when you owe taxes and your return was not filed by the deadline (that’s mid-April for most people who didn’t file for an extension).The failure-to-pay penalty is levied when you don’t pay your tax bill on time. The agency can apply both the late-payment and late-filing penalties at the same time if applicable, but if that happens, the late-filing penalty gets reduced.
The failure-to-pay penalty is levied when you don’t pay your tax bill on time. The agency can apply both the late-payment and late-filing penalties at the same time if applicable, but if that happens, the late-filing penalty gets reduced.The failure-to-deposit penalty, on the other hand, doesn’t apply to individual taxpayers. Instead, it’s a penalty that employers can face if they don’t turn in the taxes they are withholding on employees' paychecks to the IRS on time.
The failure-to-deposit penalty, on the other hand, doesn’t apply to individual taxpayers. Instead, it’s a penalty that employers can face if they don’t turn in the taxes they are withholding on employees' paychecks to the IRS on time.According to the agency, if you’re eligible for first-time abatement, your claim will be considered regardless of the size of your penalty.
According to the agency, if you’re eligible for first-time abatement, your claim will be considered regardless of the size of your penalty. AD Owe $10,000+ or More? This Tax Season Could Be Your Chance to Qualify Each year the IRS writes off millions in tax debt, yet few have applied. Learn moreon Anthem Tax Services' website
AD Let’s resolve your tax issues: Tax Relief & Resolution Services for IRS Tax Debt Certified Enrolled Agents, CPAs, and Tax Attorneys on your case. Learn moreon TaxRise's website
How to qualify for a first-time penalty abatement
How to qualify for a first-time penalty abatementIf you meet two criteria, you might be able to get the IRS to reverse the penalties for not filing a tax return or paying on time.
If you meet two criteria, you might be able to get the IRS to reverse the penalties for not filing a tax return or paying on time.You must have filed a tax return for at least three years prior to when you got a penalty if you were required to.
You must have filed a tax return for at least three years prior to when you got a penalty if you were required to.You can’t have received another penalty over the last three years (or if you did, it must have been removed for reasons other than first-time abatement)
You can’t have received another penalty over the last three years (or if you did, it must have been removed for reasons other than first-time abatement) Internal Revenue Service. Administrative penalty relief. Accessed Oct 17, 2025. .You don’t necessarily have to have paid your outstanding tax bill in full to apply for first-time abatement — but keep in mind that the IRS will continue to apply the failure-to-pay penalty from the date of your abatement request onward until your debt is fully paid off.
You don’t necessarily have to have paid your outstanding tax bill in full to apply for first-time abatement — but keep in mind that the IRS will continue to apply the failure-to-pay penalty from the date of your abatement request onward until your debt is fully paid off.The rules for reducing failure-to-deposit penalties can be more complex. See the IRS Penalty Handbook for more details.
The rules for reducing failure-to-deposit penalties can be more complex. See the IRS Penalty Handbook for more details.How to apply for penalty abatement
How to apply for penalty abatementYou can ask for first-time penalty abatement by calling or mailing a form to the IRS.
You can ask for first-time penalty abatement by calling or mailing a form to the IRS.Requesting first-time abatement by phone
Requesting first-time abatement by phone Requesting first-time abatement by phoneIf you call the IRS' main number, you might get an answer right away, but be sure to get the agent’s name and number, and then follow up with a written letter. Already received an official IRS notice about your penalty? There will likely be a number on the upper right-hand side of the letter that you can call
If you call the IRS' main number , you might get an answer right away, but be sure to get the agent’s name and number, and then follow up with a written letter. Already received an official IRS notice about your penalty? There will likely be a number on the upper right-hand side of the letter that you can call Internal Revenue Service. Penalty Relief due to First Time Abate or Other Administrative Waiver. Accessed Oct 17, 2025. .Requesting first-time abatement with Form 843
Requesting first-time abatement with Form 843 Requesting first-time abatement with Form 843If you’d rather request abatement by mail, or if you've already paid a penalty and now realize you might be able to get your money back, you’ll want to file IRS Form 843. There, you’ll tell the IRS which penalty you want removed or refunded and why.
If you’d rather request abatement by mail, or if you've already paid a penalty and now realize you might be able to get your money back, you’ll want to file IRS Form 843 . There, you’ll tell the IRS which penalty you want removed or refunded and why.✔️ Good to know
✔️ Good to know Good to knowIf there's interest that accrues from the failure-to-pay penalty or the failure-to-file penalty that's owed, the associated interest will get reduced or abated as well if your penalty relief is approved.
If there's interest that accrues from the failure-to-pay penalty or the failure-to-file penalty that's owed, the associated interest will get reduced or abated as well if your penalty relief is approved.» MORE: How to get rid of your back taxes
» MORE: » MORE: How to get rid of your back taxesBe persistent
Be persistentIf the IRS denies your request for first-time penalty abatement but you still think you qualify, you can appeal the decision. You typically have to file the appeal within 30 days of the IRS' rejection. Publication 4576 has more information about the appeals process
If the IRS denies your request for first-time penalty abatement but you still think you qualify, you can appeal the decision. You typically have to file the appeal within 30 days of the IRS' rejection. Publication 4576 has more information about the appeals process Internal Revenue Service. Publication 4576. Accessed Oct 17, 2025. . AD Owe $10,000+ or More? This Tax Season Could Be Your Chance to Qualify Each year the IRS writes off millions in tax debt, yet few have applied. Learn moreon Anthem Tax Services' website
AD Let’s resolve your tax issues: Tax Relief & Resolution Services for IRS Tax Debt Certified Enrolled Agents, CPAs, and Tax Attorneys on your case. Learn moreon TaxRise's website
See if you qualify for other types of penalty relief
See if you qualify for other types of penalty reliefIf it turns out that you don’t qualify for first-time penalty abatement, you might want to see if you qualify for penalty relief due to reasonable cause. However, if you incurred a tax penalty because you didn’t know the rules or made a mistake, you likely won’t qualify.
If it turns out that you don’t qualify for first-time penalty abatement, you might want to see if you qualify for penalty relief due to reasonable cause. However, if you incurred a tax penalty because you didn’t know the rules or made a mistake, you likely won’t qualify.Penalty relief due to reasonable cause is typically only an option for people who have experienced deaths in the family, house fires, medical trauma, natural disasters or other dire situations. You’ll need to provide documentation such as hospital records, court statements or other evidence that supports your claim
Penalty relief due to reasonable cause is typically only an option for people who have experienced deaths in the family, house fires, medical trauma, natural disasters or other dire situations. You’ll need to provide documentation such as hospital records, court statements or other evidence that supports your claim Internal Revenue Service. Penalty Relief for Reasonable Cause. Accessed Oct 17, 2025. .Know when to get help
Know when to get helpYou’re not required to hire someone to request a first-time penalty abatement for you. If you’re not sure whether you’ve paid any penalties or don’t know how much you owe, you don’t have to pay someone to get that either: You can get your account information from the IRS for free by requesting a tax transcript. You may also be able to get information on your amount due by creating an account on the IRS website.
You’re not required to hire someone to request a first-time penalty abatement for you. If you’re not sure whether you’ve paid any penalties or don’t know how much you owe, you don’t have to pay someone to get that either: You can get your account information from the IRS for free by requesting a tax transcript . You may also be able to get information on your amount due by creating an account on the IRS website.If you need extra help or are confused about the process, a tax pro can help you sort through your options.
If you need extra help or are confused about the process, a tax pro can help you sort through your options.» MORE: How to find a tax preparer near you
» MORE: » MORE: How to find a tax preparer near youHelpful resources
Helpful resources How to File a Tax Extension Online in 2026 What Is a Tax Lien? How It Works, How to Stop One Tax Levy: What It Is, How It Works and How to Stop One More like this Taxes Tax Relief and Resolution: 5 Ways to Deal With Tax Debt If you're behind on taxes or finding it hard to keep up with your IRS payments, here are five tax relief options that could help. 2 By Sabrina Parys, Tina Orem Guide to IRS Customer Service and Phone Numbers Lesser-known IRS customer service phone numbers could help you skip the line or talk to a person faster. Plus, learn where you can get in-person help if you need it. 2 By Tina Orem, Sabrina Parys IRS Free File: What It Is, How It Works Interested in the IRS Free File service? All you need to know about the program, plus other IRS options for free tax filing. 2 By Sabrina Parys, Tina Orem