If the IRS charged you a late-filing or late-payment penalty and you have a clean record for the prior three years, you can usually get it removed with one phone call. It is called first-time abate, and it is administrative — you do not have to prove a good excuse, only a clean history.
Most people who qualify never ask. The IRS does not apply it automatically in every case, and the notice does not mention that the relief exists.
Which penalties first-time abate covers
| Penalty | Covered? |
|---|---|
| Failure to file | Yes |
| Failure to pay | Yes |
| Failure to deposit (employment tax) | Yes |
| Accuracy-related penalty | No |
| Estimated tax penalty | No |
| Fraud penalty | No |
| Information return penalties | Generally no |
Two of those exclusions catch people out. The accuracy-related penalty — the one for substantial understatement or negligence — is not eligible for first-time abate at all; it requires reasonable cause. And the estimated tax penalty is technically interest-like and is not abated under this program, though it has its own narrow waivers for retirement, disability, or casualty.
The three-year clean-history test
You qualify if all of the following are true:
- You filed, or filed a valid extension for, all currently required returns.
- You have paid, or arranged to pay, any tax due. An installment agreement in good standing counts as arranged.
- You had no penalties for the three tax years before the year in question — with a narrow exception for an estimated tax penalty, which does not disqualify you.
That third condition is the actual test. It is a look at the three prior years of the same type of return, not your whole history. A penalty five years ago does not block you.
How to request it
By phone is fastest and often resolves the same day.
- Call the number printed on your notice, or the general individual line at 800-829-1040.
- Give the notice number, the tax year, and the penalty amount.
- Say the words: "I am requesting first-time abate for this penalty."
- If the representative asks why, answer the clean-history question — do not launch into an explanation of what happened. First-time abate is not a reasonable-cause request and volunteering a weak excuse can get the call redirected into a reasonable-cause analysis you will lose.
- Get a confirmation and ask when the adjusted notice will issue.
In writing if the phone route fails or the amount is large. Use Form 843, "Claim for Refund and Request for Abatement," or a plain letter that includes your name, taxpayer identification number, tax year, the penalty and Internal Revenue Code section from the notice, and the request. Mail it to the address on the notice and keep proof of mailing.
Some notices can be handled online through your IRS account. Check for a dispute or respond option before calling.
Interest is different
First-time abate removes the penalty. It does not remove interest, which is statutory and accrues on the underlying tax.
However, interest that accrued on the abated penalty is removed along with the penalty. So the balance drops by more than the penalty figure alone.
If you do not qualify: reasonable cause
Reasonable cause is the fallback, and it has no clean-history requirement. It requires showing you exercised ordinary business care and prudence but still could not comply. The grounds the IRS actually accepts:
- Serious illness or death — yours or an immediate family member’s
- Fire, casualty, natural disaster, or other disturbance
- Inability to obtain records
- Incorrect written advice from the IRS
- Reliance on a tax professional, in limited circumstances — reliance on an adviser rarely excuses a late filing, because the filing deadline is your own responsibility, but it can excuse a substantive error
What does not work on its own: lack of funds, forgetting, being busy, or not understanding the requirement. Lack of funds can support reasonable cause for failure to pay if the underlying cause of the shortage was beyond your control.
Attach documentation and a timeline. Reasonable cause is decided on facts, so the request should read like a chronology, not an apology.
Save first-time abate for when it counts
You can only use it once every few years in practice, because using it in year one means you have a penalty on record for the following three years’ test. If you have a small penalty now and expect a much larger exposure soon, it can be worth paying the small one and preserving the clean history.
That is a judgment call, and for most people it is not worth over-thinking a $50 penalty. But for a business with quarterly deposit obligations, it matters.
What if you cannot pay the underlying tax?
Penalty abatement addresses the penalty, not the balance. For the balance itself:
- An IRS payment plan — note that being in an installment agreement in good standing still satisfies the first-time abate payment condition, and it also cuts the failure-to-pay rate roughly in half for individuals.
- Currently not collectible status if paying anything would prevent you from meeting basic living expenses.
- An offer in compromise if the full amount is genuinely uncollectible.
FAQ
Can I get first-time abate on a penalty I already paid?
Yes. It becomes a refund claim rather than an abatement, generally subject to the normal refund limitation period — broadly three years from filing or two years from payment, whichever is later. Use Form 843.
Does it work for business returns?
Yes, including employment tax deposit penalties, using the same clean-history test applied to that return type.
Does an unfiled prior-year return block it?
Yes. All required returns must be filed first. File the missing years, then request the abatement.
Can I use both first-time abate and reasonable cause?
The IRS generally applies first-time abate first when you qualify, since it is easier to grant. If a penalty is not eligible for first-time abate, reasonable cause is your route for that one.
How long does it take?
By phone, often immediately, with an adjusted notice a few weeks later. In writing, expect a couple of months.
Does an amended return trigger new penalties?
It can, if it increases the tax. See how long an amended return takes for the timeline.
As of August 2026. First-time abate is an IRS administrative waiver described in the Internal Revenue Manual; reasonable cause standards come from Treasury regulations. Confirm the current process on your notice. Official information: IRS penalty relief.