Penalty Relief Options

 

IRS Definition:

The following types of penalty relief are offered by the IRS:

  • Reasonable Cause
  • Administrative Waiver and First Time Penalty Abatement
  • Statutory Exception

More from H&R Block:

There are four reasons the IRS removes, or abates, penalties:

  1. IRS error: This must be an error that you can prove.
  2. Statutory exception to the penalty: This means that a rule of law provides an exception for the penalty.
  3. Administrative waiver: This allows the IRS to provide penalty relief (most common is the first-time penalty abatement waiver).
  4. For cause: That is, reasonable cause when you exercised ordinary business care and prudence, but because of circumstances outside of your control, you couldn’t comply with the law.

It’s important to understand that not all reasons apply to all penalties. For example, the administrative waiver for first-time penalty abatement doesn’t apply to return accuracy penalties.

Learn how to address IRS penalties.

Get help from an IRS expert

H&R Block’s experts can solve any IRS problem, no matter how complex.

Make an appointment

Or call 855-536-6504

Related Information

How to Address IRS Penalties

Learn how to address and understand an IRS tax penalty from the tax experts at H&R Block.

How Long Does It Take? IRS Penalty Abatement

How long penalty abatement takes depends on the type of penalty relief you’re requesting. Learn more from the tax experts at H&R Block.

What To Do When You Have an Estimated Tax Penalty

Learn more about your options to reduce or remove an IRS estimated tax penalty. Get the facts from the tax experts at H&R Block.

Don’t Pay an IRS Penalty Without Looking Into Penalty Relief

The IRS grants four types of penalty relief, but many taxpayers don't ever ask. Learn how to request penalty abatement from the IRS.

What To Do About the IRS Negligence Penalty

The IRS negligence penalty is 20% of the amount you underpaid your tax. Learn about your options to address it from the tax experts at H&R Block.