I was just dumb this year and just didn’t file on time for the first time ever. I owed substantially more than normal this year, which I anticipated, but didn’t have the funds in the right account to file and pay before the deadline. I called them and in 25 minutes my penalties were abated and the balance owed went from over $1200 down to just $56 for the interest owed, which they can’t forgive apparently. No problem, I’m thrilled to save nearly $1,200! I figured others might value knowing that the IRS has this policy I didn’t know about (and vicariously celebrate a little with me).
- By far the biggest penalty was Failure to File, which you can do even if you don’t pay. If you don’t have the $$, at least file to avoid that penalty.
- The IRS has a first time abatement if you are “in good standing” and have a reason for why it happened, even if was dumb and your fault.
- The IRS was super easy to work with and very polite. My previous interaction with them was nearly a decade ago and was awful, so I was mentally prepared to just pay so I didn’t have to deal with them. I’m glad I called anyway!