Real Solutions to IRS Debt and Related Problems

IRS Penalty Elimination


The Internal Revenue Service (IRS) can assess penalties for a variety of reasons, including filing a late tax return, failing to pay taxes on time, or underpaying your taxes. These penalties can add up quickly, and they can make it difficult to get your finances back on track.

However, there are a number of ways to eliminate IRS penalties. If you qualify, you may be able to have your penalties waived or abated.




A waiver is a complete elimination of a penalty. To qualify for a waiver, you must show that you had reasonable cause for not complying with the tax law. Reasonable cause can include things like illness, financial hardship, or mistakes made by your tax preparer.




An abatement is a reduction in the amount of a penalty. To qualify for an abatement, you must show that the penalty was not properly assessed or that it is not in the best interest of the government to collect the penalty.



How to Request Penalty Elimination

If you believe that you qualify for penalty elimination, you can request it by filing Form 843, Claim for Refund and Request for Abatement. This form can be found on the IRS website.

When you file Form 843, you will need to provide information about the penalties you are requesting to be eliminated, as well as the reasons why you believe you qualify for relief. You will also need to provide any supporting documentation, such as medical bills, financial statements, or letters from your tax preparer.



The Process of Penalty Elimination

The IRS will review your request for penalty elimination and make a decision. If your request is approved, the IRS will issue a refund for the amount of the penalties that were waived or abated.

The process of penalty elimination can take several months. If your request is denied, you will receive a letter from the IRS explaining the reason for the denial.



Contacting a Tax Professional

If you are considering requesting penalty elimination, you should contact a tax professional. A tax professional can help you determine if you qualify for relief and can assist you with the filing process.