First Time Abate (FTA): How the IRS Gives You a Second Chance on Penalties
- Christian Wolff
- 23 hours ago
- 3 min read
Getting a penalty notice from the IRS can be stressful, especially if you normally file and pay your taxes on time. Many taxpayers don’t realize that the IRS offers a formal program called First Time Abate, or FTA, that can remove certain penalties when a mistake truly is a one-time issue. This administrative waiver is designed to help compliant taxpayers who slip up once and then get back on track.
If you’ve been hit with a late filing, late payment, or missed deposit penalty, First Time Abate could significantly reduce what you owe. Understanding how it works and how to request it can save you time, money, and anxiety.
What Is First Time Abate?
First Time Abate is an IRS administrative penalty relief program that allows eligible taxpayers to have specific penalties removed. It applies to the most common penalties people face, including failure to file a tax return on time, failure to pay taxes when due, and failure to deposit required taxes.
This relief is not available for accuracy-related penalties, fraud penalties, or penalties tied to certain information reporting requirements. The IRS created FTA to reward a pattern of compliance, not to excuse repeated mistakes. If you normally meet your tax obligations, FTA gives you a second chance when something goes wrong once.
Who Qualifies for First Time Abate?
To qualify for First Time Abate, you must show that you have a good compliance history. That generally means you had no penalties in the three tax years before the year you were penalized, or any penalties were removed for reasons other than First Time Abate. You also must have filed all required returns and either paid the tax you owe or arranged to pay it through a payment plan or other agreement.
The IRS offers First Time Abate to individuals, businesses, and employers with payroll tax obligations. As long as you meet the compliance standards, the program is available regardless of the size of your balance.
How to Request First Time Abate
Requesting First Time Abate is straightforward and does not require legal language. You can ask for relief by responding to the IRS notice you received, calling the IRS directly, or filing Form 843, Claim for Refund and Request for Abatement.
When you make your request, clearly state that you are asking for First Time Abate relief based on your clean compliance history. If you qualify, the IRS will apply the waiver and send written confirmation. Keep in mind that while the penalty can be removed, interest on any unpaid tax continues to accrue until the tax is paid in full.
What Happens After the Penalty Is Abated?
Once the IRS approves your First Time Abate request, the penalty is removed from your account. Any interest tied specifically to that penalty is also reduced or eliminated, which lowers your overall balance. This can make a meaningful difference in what you ultimately pay.
If the IRS denies your request, you still have options. You may be able to pursue reasonable cause relief or appeal the decision. First Time Abate is often the easiest and fastest form of penalty relief, but it is not the only one.
Final Thoughts on First Time Abate Penalty Relief
The First Time Abate program exists because the IRS understands that even responsible taxpayers can make mistakes. If you have a strong history of compliance, you should not automatically accept a penalty as final.
Using First Time Abate can reduce IRS penalties, lower your tax bill, and help you move forward with a clean slate. If this is your first major tax misstep, asking for FTA relief is one of the smartest and most cost-effective steps you can take.
Stay Updated & Support My Work
If you found this overview helpful and want to stay updated on IRS guidance, tax strategies, and financial planning insights, subscribe to my newsletter! You can also support my work with a Buy Me A Coffee—every contribution helps keep this content free, useful, and minimally ad-supported. Thanks for reading and supporting!
The information provided in this blog post is intended for general informational purposes only and should not be construed as legal or tax advice. While every effort has been made to ensure the accuracy of the information, tax laws and regulations are subject to change, and individual circumstances may vary. For personalized advice and to ensure compliance with current tax laws, it is strongly recommended that you consult with a qualified tax professional, financial advisor, or legal counsel. The author and publisher of this blog assume no responsibility for any errors or omissions, or for any actions taken based on the information contained herein.
Comments