IRS Penalty Guide
Accuracy-Related Penalty
IRC §6662
This guide explains the Accuracy-Related Penalty, how the IRS calculates it, and what relief options are available — including First Time Abate and reasonable cause.
Penalty Rate
20% of the underpayment (40% for gross valuation misstatements)
Maximum: 20% of the underpayment (40% for gross valuation misstatements)
Check Your Penalty Eligibility
Free analysis — no credit card required
Upload your IRS penalty notice · PDF, JPG, or PNG — a phone photo works
Relief Options for This Penalty
Reasonable Cause and Good Faith (IRC 6664(c))
Adequate Disclosure (Form 8275 or 8275-R)
Substantial Authority for the position taken
How This Penalty Is Calculated
Example Calculation
If you understate your income by $20,000 and owe $4,400 in additional tax (22% bracket), the accuracy-related penalty is $4,400 × 20% = $880.
Several relief programs may apply to the Accuracy-Related Penalty. Upload your notice to see which ones fit your situation.
A generic letter to the IRS gets delayed. A letter citing the exact IRM section for your situation gets results.
Upload your IRS penalty notice · PDF, JPG, or PNG — a phone photo works
How It Works
Upload Notice
Upload your IRS notice showing the penalty assessment
AI Identifies Relief Options
First Time Abate, reasonable cause, and statutory exceptions checked
Get Abatement Request
Download a formal request citing the exact IRM section for your penalty
See Your Relief Options
Upload your IRS notice and our tool identifies which penalty relief programs apply to the Accuracy-Related Penalty — including First Time Abate, reasonable cause, and statutory exceptions.
IRM-Cited Request
References exact IRM sections
FTA Eligibility Check
3-year compliance verified
Ready in Minutes
Download as PDF or Word
What you’ll see before you decide
A document-specific answer, not a generic promise:
- The amount at issue, itemized
- The rules or contract terms that appear applicable
- What looks strong, weak, or needs more evidence
Free analysis first. The optional letter comes after you see the result.
Upload your IRS penalty notice · PDF, JPG, or PNG — a phone photo works
Free analysis · No signup · No card
See which penalties may qualify and the amount at issue on your notice. The IRS makes the final decision.
Frequently Asked Questions
What triggers the accuracy-related penalty?
The penalty applies for: (1) negligence or disregard of rules/regulations, (2) substantial understatement of income tax (exceeds the greater of 10% of the correct tax or $5,000), or (3) substantial or gross valuation misstatements.
Is the accuracy-related penalty eligible for First Time Abate?
No. First Time Abate only applies to failure to file, failure to pay, and failure to deposit penalties. The accuracy-related penalty requires reasonable cause or adequate disclosure for relief.
What is negligence under IRC 6662?
Negligence includes failure to make a reasonable attempt to comply with tax law, failure to keep adequate books and records, and failure to substantiate items properly.
Facing the Accuracy-Related Penalty? Check your eligibility for relief.
Upload your IRS penalty notice · PDF, JPG, or PNG — a phone photo works
What qualifies as reasonable cause to avoid this penalty?
Reasonable cause factors include reliance on professional advice, complexity of the issue, efforts to assess the correct tax, taxpayer education and experience, and any circumstances that prevented compliance.
Can disclosure on the return prevent the penalty?
Yes. Adequate disclosure of a position on Form 8275 (or 8275-R for regulation-contrary positions) can avoid the negligence component if the position has a reasonable basis.
What is a substantial understatement?
A substantial understatement exists when the understatement exceeds the greater of 10% of the tax required to be shown on the return or $5,000 ($10,000 for corporations).
See If You Qualify to Wipe the Accuracy-Related Penalty
Upload your IRS notice and our tool checks the exact IRM provisions that apply to the Accuracy-Related Penalty.
Upload your IRS penalty notice · PDF, JPG, or PNG — a phone photo works
Free analysis · Instant results · No signup · No card
See which penalties may qualify and the amount at issue on your notice. The IRS makes the final decision.