How can an elderly person avoid the penalty fees of back taxes?

Question

My grandpa, old and confused, had not been doing his taxes for years. He went back and did them for the last 3 years recently.
He owed a few thousand, paid it and the saga continues with all sorts of penalties for not paying up earlier.

Is there a form or contact info for people that didn't pay their taxes due to dementia and can be exempt from such fees?

Answer 1

Generally, you can't avoid penalties from not paying your income taxes unless it will create an undue hardship. Since he was able to pay the taxes off, I doubt that the IRS will give him a break on the penalties. However, they are open to setting up a payment plan.