Can IRS penalties be reduced or removed?

Sunday, November 22, 2026 · Question 11 of 19

Sometimes, yes — and it's one of the first things we check. The IRS can reduce or remove penalties when you can show a reasonable cause: a serious illness, a death in the family, a natural disaster, records destroyed, or another event outside your control. You have to ask for it, and you have to show your proof — the IRS doesn't volunteer it. Penalties also stop growing once the underlying tax is paid, which is another reason to deal with the balance instead of letting it sit. If penalties are a big part of what you owe, don't assume the number is final. Bring the notice and we'll see whether relief applies to your case.