First-Time Penalty Abatement

Save hundreds or thousands of dollars by requesting penalty relief if you have a clean compliance history.

What is First-Time Penalty Abatement?

First-Time Penalty Abatement (FTA) is one of the IRS's most generous penalty relief programs. If you qualify, the IRS will remove failure-to-file, failure-to-pay, and failure-to-deposit penalties for a single tax period.

Eligibility Requirements

To qualify for FTA, you must meet ALL of these criteria:

• Clean History: No penalties in the prior 3 tax years
• Currently Compliant: All required tax returns are filed
• Payment Arrangement: You've paid all tax owed or have an approved payment plan

Potential Savings

Which Penalties Can Be Removed?

FTA applies to these common IRS penalties:

How to Request FTA

You can request First-Time Penalty Abatement in two ways:

Option 1: By Phone

1. Call the IRS at 1-800-829-1040
2. Request "First-Time Penalty Abatement"
3. Confirm your clean 3-year history
4. Get immediate approval in most cases

Option 2: Written Request

1. Write a letter to the IRS address on your penalty notice
2. Reference your tax year and notice number
3. State that you qualify for FTA
4. Include supporting documentation

What FTA Doesn't Cover

First-Time Penalty Abatement has limitations:

• Interest charges continue to accrue
• Only works once (it's "first-time" for a reason)
• Doesn't apply to accuracy-related penalties
• Can't be used for multiple tax years simultaneously