Late once? Ask for first-time removal

You were late once, and the rest of your record is clean. First time penalty abatement can take off a late filing, late payment or late deposit penalty when the 3 years before were clean. You can ask the IRS yourself in a free call, or have a tax pro ask for you.

• 3 years

  The IRS looks at the 3 tax years before the late one, or 12 quarters for payroll returns: the same return filed on time, and no penalties.

  that record is what the IRS checks, and it does not ask you for proof.

  check those years before you call.

• Refund window

  Already paid the penalty? The Form 843 instructions say you generally must claim within 3 years after filing the return or 2 years after paying, whichever is later.

  for example, a return filed and paid on August 14, 2025 has until August 14, 2028.

  check both dates before you call or mail the form.

• $0 to ask

  The phone call to the IRS costs nothing, and the size of the penalty does not matter.

  a $90 penalty and a $9,000 one get the same test.

  ask about every year that has a late filing or late payment penalty.

The three rules

The first two are the IRS test on its administrative penalty relief page. The third is the practical step before you ask.

1. The same return, filed on time, for the 3 years before. For quarterly filers, that is 12 quarters in a row. If you had no return due in one of those years, ask the IRS how it reads your record.
2. No penalties in those years. Two kinds do not count against you. The IRS names the estimated tax penalty, and a penalty later abated for reasonable cause or IRS error.
3. Get caught up first. File the late return and pay the tax or set up a payment plan, so the IRS reviews a current account.

Businesses have two more conditions. The IRS cannot have waived a late deposit penalty 4 or more times in those 3 years. The penalty also cannot be for skipping the EFTPS electronic payment system.

Which penalties it covers

The interest charged on the penalty comes off with it.

Ask the IRS by phone: the script

Odette Brandt, a made-up example, filed her 2024 return four months late and owed $800 in penalties. Call the toll-free number printed in the top right corner of your notice. Have the notice in your hand, and a pen.

Write down the date, the agent's name and ID, and the amount removed. If the call ends with a yes, you do not need Form 843.

If they say no

Ask the agent which rule you missed. Often it is a penalty in one of the 3 earlier years, or a return not yet filed.

If you had a good reason, such as a hospital stay, ask for removal for reasonable cause instead. The IRS reasonable cause page says you can then ask in writing with Form 843. Fill in Form 843 with the reasonable cause reason, and if the IRS still says no, see how to appeal.