The IRS denied your penalty abatement request
A denied penalty abatement means the IRS did not find reasonable cause to remove the penalties on your account. Understanding why — and what the IRS shows about the penalties themselves — is the first step forward.
What happens after denial
The IRS documented its reason
The denial letter explains why reasonable cause was not found — typically due to lack of documentation, prior similar penalties, or other factors.
The penalties remain on your account
Unless abated, penalties continue to accrue interest and may affect your total obligation.
Your options depend on what's documented
Whether new evidence, different circumstances, or other factors might support reconsideration requires clear documentation.
Before pursuing further action, you need clarity on exactly what the IRS shows and why the denial occurred.
What a compliance review documents
A compliance review provides:
- •What penalties are on your account and why
- •When penalties were assessed
- •What the IRS cited in denying abatement
- •Whether any gaps in documentation exist
You'll understand exactly what's on record and why abatement was not approved.
This clarity helps you evaluate whether further pursuit makes sense.