Glossary

First-Time Penalty Abatement (FTA)

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First-Time Penalty Abatement (FTA) is an IRS program that allows taxpayers to remove or reduce certain penalties if they have a clean compliance history. This relief is available for penalties related to:

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

To qualify for FTA, taxpayers must meet the following conditions:

No penalties have been assessed in the previous three tax years.
All required tax returns have been filed.
The taxpayer is either current on payment of taxes or has arranged a payment plan.

FTA can be requested by calling the IRS or by writing a formal request. If granted, the IRS will remove the penalty, reducing the taxpayer’s overall liability. FTA is especially helpful for taxpayers who have missed a filing or payment deadline due to an oversight or isolated incident and have a history of compliance.

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