IRS Interest/Penalty Waiver Calculator
Assess eligibility for penalty abatement and interest waiver.
First-Time Abatement Eligibility
FTA Eligible:No
Clean Years:3
Compliant:Yes
FTA requires: 3-year clean history + currently filed/paid + no prior FTA used.
Reasonable Cause Assessment
Category:Medical/Health
Strength:Strong
Score:85%
Likelihood:High
Reasonable cause: circumstances beyond your control despite due diligence.
Documentation Needed
- Doctor statement
- Hospital records
- Disability proof
Attach all supporting documents to abatement request (Form 843 or letter).
Penalty Details
Type:failure_to_pay
Amount:$ 2500
Rate:0.5% per month
Max:25% total
Abatement Recommendation
Strong reasonable cause case - file Form 843 with full documentation
Penalty:$ 2500
Potential Saved:$ 2125
FTA: one-time waiver. Reasonable cause: must prove circumstances.
Interest Abatement
Interest rarely abated except for IRS errors
Interest only abated for IRS errors or statutory exceptions. Very limited.
Penalty Abatement Key Points
- FTA: 3-year clean history
- FTA: one-time only
- Reasonable cause: documented
- Medical: strong cause
- Disaster: automatic area
- IRS error: abate both
- Interest: rarely abated
- File Form 843 or write
- Appeal within 30 days
- Keep all documentation