First-time abatement
Administrative relief is available to taxpayers with a clean compliance history — broadly, no penalties in the preceding three years, all required returns filed, and any balance paid or under an arrangement. It applies to failure-to-file, failure-to-pay and failure-to-deposit penalties. It is not discretionary hardship relief; it is a defined administrative waiver, and it is under-claimed because taxpayers do not know it exists.
Reasonable cause
Where first-time abatement is unavailable, penalties may still be removed for reasonable cause — circumstances where an ordinarily prudent person exercising ordinary business care could not have complied. What supports a reasonable cause claim:
- Serious illness or death affecting the taxpayer or an immediate family member
- Fire, flood, casualty or a natural disaster affecting records
- Records unobtainable through no fault of the taxpayer
- Reliance on incorrect written advice from a tax professional or the IRS
- Contemporaneous documentation of any of the above — the documentation is usually what decides it
How much can be removed?
Whatever penalties were assessed for the qualifying period, plus the interest attributable to them. On multi-year balances that is often a substantial share of the total.
Can I request it myself?
Yes — first-time abatement can sometimes be handled in a single phone call. Reasonable cause claims are stronger in writing with documentation, and that is where representation earns its keep.
What if I have already paid the penalty?
You can claim a refund of a paid penalty within the applicable limitation period.
Does Oregon abate penalties?
Oregon has its own discretionary waiver process with its own standards. It is a separate request from the federal one.
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Written by
Enrolled Agent, Oregon Licensed Tax Consultant
License number: Enrolled Agent 00160070-EA · Oregon Licensed Tax Consultant 35746-C
Heather has spent more than a decade preparing individual and business returns across the Portland metro and the Columbia Gorge, and holds unlimited rights to represent taxpayers before the IRS.
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This page is general information about Oregon, Washington and federal tax rules, not advice about your own return. Thresholds and rates change every year. Figures were verified as of August 2026 — check the linked official sources, or talk to us about your situation.