Glossary

First-Time Abatement (FTA)

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First-Time Abatement (FTA) is a penalty relief program offered by the IRS that allows taxpayers to remove certain penalties if they have a clean compliance history. FTA applies to penalties for:

Failure to File.
Failure to Pay.
Failure to Deposit.

Taxpayers can qualify for FTA if:

They have not been penalized in the past three years.
All required tax returns have been filed.
Any outstanding tax debt has been paid or an installment agreement is in place.

Taxpayers can request FTA by calling the IRS or submitting a formal written request. If approved, the penalties will be abated, reducing the taxpayer’s liability. FTA is designed to reward taxpayers who generally comply with tax laws but may have made a one-time mistake.

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