How to Get an IRS Penalty Reduced
Here’s what a lot of independent artists never find out: an IRS penalty is not always the final word. Sometimes you can get it removed — if you ask the right way.
The IRS can and does remove penalties. The two most common doors are first-time relief (a clean record buys you one) and reasonable cause (something real got in the way). But you have to actually request it — it’s not automatic.
First-time penalty relief
If you’ve generally been on time and this is your first slip, the IRS may waive the penalty simply because you have a clean history. It’s one of the most overlooked forms of relief — often a phone call or a short request away. This rewards artists who usually file on time, which is one more reason to never skip a filing.
Reasonable cause
If something genuinely outside your control caused the problem — a serious illness, a disaster, records destroyed, a death in the family — the IRS can remove penalties for reasonable cause. The key is showing you tried to do the right thing and life got in the way. "I forgot" isn’t reasonable cause; a documented hardship can be.
How to actually ask
- Read the notice — it names the exact penalty and the tax year.
- Ask for first-time relief first if your record is clean.
- Explain the reason plainly and attach anything that backs it up.
- Keep filing and paying while you ask — don’t let a new penalty stack on the old one.
- Get help for bigger balances — a CPA or tax pro does this all the time.
This is general education, not tax advice — Done Deal Digital isn’t a CPA firm. What actually applies to you depends on your income, your records, and your situation. Before you act, run it by a qualified CPA or tax professional.
That’s the short version
Don’t pay a penalty you could have removed
The full chapter gives you the exact words to use, which relief to ask for first, and the follow-up steps — so you’re not leaving money on the table just because nobody told you the penalty was negotiable.
Get the Guide — $39 →Or get all seven tax guides in one — The Complete Tax & Money Guide, $99 →