Check whether a penalty needs a second look

Separate the penalty from the tax

Find the exact penalty named on the notice before asking for it to be reduced or removed. Late filing, late payment, estimated-tax underpayment and other penalties have different rules. Relief from one does not automatically remove another. Record the tax period, amount and notice date so the IRS can identify the charge you are discussing. IRS penalty information

Removing a penalty also does not erase the underlying tax. Interest attributable to a removed penalty is adjusted under IRS rules, but interest on unpaid tax generally remains. A request for relief should therefore be considered alongside a plan for the tax balance. IRS administrative relief

Check the newer automatic process

The IRS began transitioning from request-based First Time Abate to Automatic Exemption from Penalty, or AEP, in summer 2026. AEP applies to eligible original 2025-and-later tax-year returns and eligible 2026-and-later quarterly returns. The IRS checks its records when an original return completes processing and sends a letter when it applies the relief. It is not a promise that every first late filing is penalty-free. IRS July 2026 AEP explanation

The rules include the return type, prior compliance history and a filing window. The original return generally must be filed within three years of its original due date. For the relevant prior periods, review timely filing or a lack of a filing requirement and how earlier penalties were handled. On a joint return, both spouses' histories can matter. The IRS's current instructions, rather than a simple yes-or-no website score, control this review. June 2026 procedural update

Know when First Time Abate still matters

First Time Abate, usually shortened to FTA, remains relevant for older periods and transition returns not considered for AEP. The transition includes eligible 2025 tax-year returns processed before AEP starts, and eligible 2026 quarterly returns processed before it starts. The IRS has not supplied an exact summer start day in the reviewed sources; use its notice to check what happened on your account. It is request-based: an assessed penalty may be removed after the IRS checks the applicable compliance requirements. The IRS explains that you can call the number on your notice or send a written request or Form 843 using its instructions. IRS FTA and AEP comparison

For original returns with due dates of January 1, 2027, or later, the IRS says AEP replaces FTA. IRS transition explanation

Do not assume earlier relief leaves an unqualified clean history. A penalty removed for reasonable cause or IRS error is treated differently from earlier FTA, AEP or tolerance-based relief under the relevant rules. Gather the prior-period information if you have it; if not, ask the IRS to explain what its records show. Avoid describing your history as clear based only on not remembering a penalty.

Consider reasonable cause separately

When administrative relief does not apply, reasonable cause may be another question to discuss. The IRS considers facts and circumstances, including whether you exercised ordinary care but still could not file or pay on time. Examples can involve serious illness, a natural disaster or inability to obtain necessary records. No short list guarantees relief. IRS reasonable-cause guidance

Lack of money by itself generally is not reasonable cause for failing to pay. Explain what happened, when it happened, how it prevented compliance and what you did to correct the problem. Keep supporting records. Give the IRS relevant evidence without sending unrelated sensitive material or embellishing the events.

Prepare a focused request

Start with the notice and a short timeline. Identify the penalty and period, state why you are asking for review, and use the contact or mailing instructions the IRS provides. Some requests can be handled over the phone. Others require written information or Form 843. Keep a copy of what you send and note the date of the conversation. IRS request instructions

If you receive an AEP letter, follow what it actually says; you generally do not need to request relief that the IRS has already applied. If a penalty appears despite a belief that AEP should have applied, contact the IRS. If relief is denied, read the decision for the next steps and deadlines rather than assuming a new request restarts the process.

Use illustrations for the right purpose

The site's penalty calculator demonstrates current rates and caps across a selected period. It cannot reconstruct an assessed balance, decide reasonable cause or predict administrative relief. Do not deduct a hoped-for waiver from the result. A notice or account adjustment is the evidence that the IRS actually changed the charge.

When to get help

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