First-Time Penalty Abatement (FTA)

First-Time Abatement is an IRS administrative waiver that removes failure-to-file, failure-to-pay, and failure-to-deposit penalties for taxpayers with a clean compliance history. It's one of the easiest ways to get IRS penalty relief.

The IRS looks at the 3 tax years before the year you're requesting abatement for. You must have filed all required returns and had no penalties (or had them fully paid) during this period.

FTA applies to one tax year at a time per IRS policy. If you have penalties for multiple years, you may want to request FTA for the year with the largest penalty first. Approval is at IRS discretion.

No. FTA only removes penalties, not interest. Interest continues to accrue until the underlying tax is paid. However, removing the penalty reduces the total amount interest is calculated on.

You can request FTA by calling the IRS at 1-800-829-1040 (many agents can approve it on the spot), sending a written request with your payment/notice, or using Form 843 for a formal claim.

You can still request FTA! If approved, you'll receive a refund or credit. You can request abatement for penalties paid within the past 2 years (or 3 years from when the tax was paid, whichever is later).

If FTA is denied, you may still qualify for reasonable cause relief. Common reasons include serious illness, natural disaster, death in family, or reliance on incorrect IRS advice. You can appeal the denial.