How to Get IRS Penalties Removed (Oklahoma Taxpayer Guide)

If the IRS added hundreds or thousands of dollars in penalties and interest to your tax bill, you’re not alone — and you may not have to pay them all.

With the right documentation and timing, it’s often possible to reduce or remove IRS penalties through a process called penalty abatement.

At Boulanger CPA, we help Oklahoma taxpayers request abatement professionally and effectively — even if they’ve already received multiple IRS notices.



Here’s how the process works.

Why Did the IRS Add Penalties?

Most IRS penalties come from two categories:

• Failure to File – You filed your return late
  
  
• Failure to Pay – You didn’t pay the tax due on time
  
  

Other penalties include:

• Estimated tax penalties
  
  
• Return accuracy penalties
  
  
• Trust Fund Recovery Penalty (for payroll tax issues)
  

What Is Penalty Abatement?

Penalty abatement is the formal process of asking the IRS to remove or reduce penalties.

There are three types of IRS penalty abatement:

• First-Time Penalty Abatement (FTA)
  
  
• Reasonable Cause Abatement
  
  
• Statutory Exception (rare)
  

First-Time Penalty Abatement (FTA)

You may qualify for FTA if:

• You filed all required returns (or filed them late just once)
  
  
• You’ve paid or arranged to pay your current balance
  
  
• You haven’t had penalties in the prior 3 years
  
  

This is available for failure to file, failure to pay, and failure to deposit penalties.

Pro tip: Even if you don’t meet all the criteria, the IRS may still grant FTA if you’re close and act professionally.

Reasonable Cause Penalty Relief

If you’ve already used your first-time waiver — or your penalty was for something more serious — you may still qualify for reasonable cause abatement.

The IRS may approve it if you show:

• Illness or hospitalization
  
  
• Natural disaster
  
  
• Death in the family
  
  
• Reliance on a tax professional
  
  
• Records destroyed (fire, flood, theft)
  
  
• Honest mistake with strong compliance history
  
  

We help clients prepare strong, facts-driven abatement requests that fit IRS criteria.

How to Request Penalty Abatement

Here’s how we do it:

• Review your IRS account transcript
  
  
• Determine FTA or reasonable cause eligibility
  
  
• Draft a penalty abatement letter (or Form 843)
  
  
• Submit to the appropriate IRS unit
  
  
• Follow up and document the resolution
  
  

In some cases, we file the request by phone, but for complex cases we recommend a written explanation with attached proof.

Real Example: Penalty Removed in Tulsa, OK

Client: Construction subcontractor

• Filed late and owed $22,000
  
  
• IRS added $4,400 in penalties
  
  
• We filed for FTA and reasonable cause due to illness
  
  
• Penalties removed in full
  

Can You Get Interest Waived Too?

Not usually. IRS interest is statutory — meaning it’s required by law.



But if the penalty is removed, the interest tied to that penalty also goes away.

We Help Oklahoma Clients Eliminate IRS Penalties

At Boulanger CPA, we:

• Review your case for abatement eligibility
  
  
• Draft professional IRS correspondence
  
  
• Request transcripts and document compliance
  
  
• Negotiate directly with the IRS on your behalf
  
  

📞 Call (405) 384-4900
📅 Schedule a free strategy call

✍️ About the Author

Marc Boulanger, CPA, is the founder of Boulanger CPA and Consulting PC, a CPA firm based in Oklahoma City, OK.

Marc is the author of Oklahoma Taxpayers' Guide: Taking a Stand Against the IRS and has resolved hundreds of complex federal and state tax cases.

With over a decade of experience in IRS and OTC representation, Marc helps Oklahomans navigate high-stakes tax problems with clear strategy and calm expertise.

He is a Certified Tax Representation Consultant and a member of the American Society of Tax Problem Solvers (ASTPS).

📍 Office: Oklahoma City, OK | 📞 (405) 384-4900 | 🌐 www.oklahomacity.cpa