The first move
Identify which penalty it is, then check whether you qualify for first-time abatement before you write a single word of explanation.
What these letters have in common
Penalty notices name the penalty and the code section. The three you will see most are failure to file (section 6651(a)(1)), failure to pay (6651(a)(2)), and the estimated tax penalty (6654 or 6655). Businesses add the deposit penalty (6656) and information return penalties (6721 and 6722). Partnerships and S corporations get a per-owner late filing penalty (6698 and 6699).
The relief paths are different for each. Failure to file, failure to pay, and deposit penalties qualify for first-time abatement if the prior three years were clean. Reasonable cause covers those and most others when something outside your control caused the failure. The estimated tax penalty is interest by another name and is waived only for casualty, disaster, or retirement in limited cases. Interest on the tax itself is never waived except for IRS error.
Read the penalty pages for the rates. Then decide: pay it, or ask.
What to gather
- The penalty notice with the penalty type and amount
- Your filing history for the three prior years (IRS account transcripts show this)
- Proof of when you filed and paid (e-file acknowledgments, payment confirmations)
- For reasonable cause: dated documents for the event (medical records, death certificate, insurance claim)
How to write back
- First-time penalty abatement request letter: If you have filed and paid on time for the past three years, the IRS will usually remove a failure-to-file or failure-to-pay penalty once. This letter asks for it.
- Reasonable cause statement: When first-time abatement does not apply, you can ask the IRS to remove a penalty because circumstances beyond your control caused the failure. This statement lays out the facts in the order the IRS reads them.
- Missed deadline explanation: A plain statement of why a return or payment was late, for use with a late return or a penalty relief request.
Notices in this family
| Notice | What it means |
|---|---|
| CP15 | Civil penalty assessed, with the reason and the code section |
| CP15B | Trust fund recovery penalty assessed against you personally |
| CP15H | Penalty related to an obsolete provision |
| CP30 | Estimated tax penalty assessed on your individual return |
| CP30A | Estimated tax penalty reduced or removed |
| CP141C | Exempt organization: penalty for a late or incomplete return |
| CP141I | Exempt organization: penalty on an incomplete return |
| CP141L | Exempt organization: penalty on a late return |
| CP141R | Exempt organization: penalty removed |
| CP162 | Partnership or S corporation late filing penalty, per owner per month |
| CP165 | Penalty for a dishonored payment |
| CP173 | Business estimated tax penalty |
| CP207 | Business: proposed penalty for a deposit schedule that does not match liability |
| CP207L | Business: penalty for a late deposit schedule |
| CP215 | Business civil penalty assessed |
| CP235 | Business deposit penalty removed or reduced |
| CP238 | Business deposit penalty assessed |
| CP248 | Business: penalty for a deposit made by the wrong method |
| CP276B | Business: penalty for failing to make deposits electronically |
| CP283 | Retirement plan: late filing penalty on Form 5500 |
| CP283C | Retirement plan: penalty on a late Form 5500 after a prior notice |
| CP294 | Business penalty assessed for a filing failure |
| CP568 | Information return penalty, second notice |
| CP569 | Information return penalty assessed |
| CP587 | Information return penalty assessed for late or incorrect filing |
When to get help
Accuracy-related penalties (section 6662) and civil fraud penalties are different animals. If the notice cites either, get representation.
Before you send anything
This is general information, not tax advice. Situations differ. Check with your tax advisor before you send anything. Nothing on this page creates a client relationship.