Can you avoid paying a tax penalty?

[Theben]

In a nutshell, a friend of mine didn't pay on time, no extension. I'm curious if there's any way that the IRS will forgive or reduce a penalty for late payment. Has anyone here ever been able to do this?

[Bereta_Eder]

If the fine is big and he pays it all at once they might reduce it. Or maybe reduce the interest.
To abolish it completely.... two things are certain. Death and...
Never mess with the tax agency.

[duke o' york]

Tell him if he isn't going to pay, then he should start packing for North Korea immediately. I don't know how the US system works, but over here, you'll get a percentage penalty if you don't pay on time, and then another after a second period. It mounts up to a horrendous tax bill.

[rah]

It might be worth hiring a tax lawyer. While it will cost something, they can be good at negotiating partial payment of penalties when accompanied by a payment schedule.

[DAVOUT]

Here, you can make things easier in asking for delay before the due date; this will avoid the penalty, but not the interests. And when all installments have been paid as authorized, you can ask for the charge of interests being reduced or even cancelled.

[duke o' york]

Talk to the IRS if he needs a repayment schedule. As long as they get their cash, then I'm sure they won't be too bothered about instalments.

[Skanky Burns]

Here you pay interest and a fine of $110 per month (up to a maximum of $550) if you are late. On the other hand, you can claim the interest you paid this year as a deduction on your return next year.