First-Time Penalty Abatement

What Is First-Time Penalty Abatement?

First-Time Penalty Abatement (FTA) is an IRS administrative waiver that removes failure-to-file, failure-to-pay, or failure-to-deposit penalties for taxpayers who meet specific criteria. Unlike reasonable cause relief, you don't need to prove circumstances beyond your control—you only need to demonstrate a clean compliance history.

Eligibility Requirements

To qualify for FTA, you must have (1) no penalties in the prior 3 years, (2) filed all required returns (or have a valid extension), and (3) paid or arranged to pay any tax due. The IRS will also consider whether you're otherwise compliant. FTA is typically granted for one tax period at a time.

Which Penalties Qualify

FTA applies to failure-to-file, failure-to-pay, and failure-to-deposit penalties. It does not apply to accuracy-related penalties (e.g., negligence, substantial understatement) or fraud penalties. We review your situation to confirm FTA eligibility and identify any penalties that qualify.

How to Request FTA

You can request FTA by calling the IRS, writing a letter, or using the IRS Online Account. You should explicitly request First-Time Penalty Adatement and confirm you meet the criteria. We prepare your request, ensure it's submitted correctly, and follow up until the IRS processes it.