--- title: "Penalty abatement: Definition and Sources | Tax Glossary" description: "Penalty abatement is the IRS removing or reducing a penalty, usually for a first-time issue, reasonable cause or a statutory exception." url: https://wallacecpa.multisites.ai/glossary/penalty-abatement publisher: Wallace CPA phone: +1-877-682-1171 quote: https://wallacecpa.multisites.ai/contact --- IRS notices # Penalty abatement Penalty abatement is the IRS removing or reducing a penalty, usually for a first-time issue, reasonable cause or a statutory exception. The IRS can remove some penalties. It calls this penalty relief. You may qualify if you tried to follow the tax laws but could not because of circumstances beyond your control. The IRS lists three types: first time penalty abate and administrative waiver, reasonable cause, and a statutory exception. First, check that the penalty is correct. If it is not, follow the notice. Late filing penalties often follow a missed [tax extension](https://wallacecpa.multisites.ai/glossary/tax-extension) or unpaid [estimated tax payments](https://wallacecpa.multisites.ai/glossary/estimated-tax-payments). Relief is not guaranteed. The [IRS problems page](https://wallacecpa.multisites.ai/services/irs-problems) lists other options. [Wallace CPA can helpIRS problem resolution](https://wallacecpa.multisites.ai/services/irs-problems) ## Related terms - [Tax extension](https://wallacecpa.multisites.ai/glossary/tax-extension) - [Estimated tax payments](https://wallacecpa.multisites.ai/glossary/estimated-tax-payments) - [IRS CP2000 notice](https://wallacecpa.multisites.ai/glossary/irs-cp2000-notice) - [Installment agreement](https://wallacecpa.multisites.ai/glossary/installment-agreement) ## Sources 1. [IRS: Penalty relief](https://www.irs.gov/payments/penalty-relief) ## Talk to Wallace CPA Call the Southlake office and say what you need: a return, an IRS letter, your books or a new business. Have the notice or last year's return nearby if you have one. [Call (877) 682-1171](tel:+1-877-682-1171)[Send a message](https://wallacecpa.multisites.ai/contact) 180 State Street, Suite 225, Southlake, TX 76092