Got a CP14 letter from the IRS saying I owed >$1,200 for failure to file (which is true). I called them and a 25 minute call reduced it to $56, just the interest, due to their “First Time Abatement”. It never hurts to call!

by FranklyPatheticAnswr

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).

Lessons learned:

1. 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.
2. 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.
3. 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!