The IRS tacks on fees for failure to file, failure to pay, failure to pay proper estimated tax, and dishonored checks. Unfortunately, IRS penalty and interest rates really add fuel to the fire when you're already having trouble coming up with the funds to cover the tax amount owed. Penalty abatement could be on the table if IRS penalties and fees are piling up on your account. The IRS may grant abatement if it can be proven that extenuating circumstances were responsible for the tax debt that has accumulated. This often includes natural disasters, fires, death, serious illness, or other factors that made it impossible to fulfill your tax obligations. IRS penalties and interest can sometimes be cleared when you enter into IRS-approved payment plans or seek relief options.