Answers · IRS notices & tax problems
Can IRS Penalties Be Removed?
Penalties can sometimes be removed through reasonable cause, statutory exceptions, administrative relief or correction of the underlying assessment. In summer 2026 the IRS began replacing First Time Abate with Automatic Exemption from Penalty (AEP) for eligible current/future periods. Older periods can still involve FTA rules. Always check the period and penalty type.
How it works
The rule, and what it turns on.
Relief is penalty- and period-specific. For current periods, AEP can replace the older FTA approach when eligibility rules are satisfied.
Example
Historically compliant taxpayer with eligible late filing may receive automatic AEP; otherwise reasonable cause can be considered.
Common mistakes
What we see go wrong, and what we do instead.
- Requesting FTA without checking AEP period.
- Assuming preparer reliance always excuses filing deadline.
A better approach
- Separate administrative relief analysis from reasonable-cause narrative.
Authority
Where this comes from, so you can check it.
IRC §§6651, 6656 and 6662 as applicable; reasonable-cause rules; IRS Administrative Penalty Relief guidance. IRS began transitioning First Time Abate to Automatic Exemption from Penalty (AEP) in summer 2026.
Relevant case law
United States v. Boyle, 469 U.S. 241 (1985) - reliance on an agent generally does not establish reasonable cause for
missing a known filing deadline.
Higbee v. Commissioner, 116 T.C. 438 (2001) - discusses burden of production for penalties and reasonable-cause
concepts in deficiency cases.
Educational information, not individualized tax advice. Treatment depends on your facts, entity classification and tax year, and IRS instructions change. Confirm your own position with us before relying on it. Mint Associates does not provide legal services.
Also asked
The same question, the other ways people put it.
- What Is IRS Penalty Abatement?
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