First Time Abatement (FTA) is the most powerful tool for eliminating IRS penalties for qualifying taxpayers. This comprehensive guide covers everything you need to know about qualifying for and obtaining FTA relief in 2024.
Quick Takeaways
- • FTA has a high approval rate for qualifying taxpayers
- • Requires clean 3-year compliance history
- • Can eliminate both failure to file AND failure to pay penalties
- • No income or financial hardship requirements
- • Typically processed within 2-8 weeks
What is First Time Abatement?
First Time Abatement (FTA) is an IRS administrative relief program that completely removes penalties for taxpayers who have maintained good compliance for the previous three years. It's designed to give taxpayers a "clean slate" for their first penalty occurrence.
The program recognizes that even compliant taxpayers can make mistakes, and provides relief without requiring detailed explanations or financial hardship documentation.
FTA Qualification Requirements
✅ You Qualify If:
- • Clean 3-year compliance history
- • Currently compliant with filing requirements
- • Current on payments or have arrangement
- • Haven't used FTA in past 3 years
❌ You Don't Qualify If:
- • Penalties in past 3 years
- • Outstanding unfiled returns
- • Current payment defaults
- • Previously used FTA relief
How to Apply for First Time Abatement
Verify Your Compliance History
Request your account transcript to confirm you have no penalties for the 3 years prior to the penalty tax year, excluding the penalty tax year itself.
Contact the IRS
Call the number on your penalty notice or 1-800-829-1040. Request First Time Abatement relief and provide your compliance history.
Follow Up in Writing
Submit a written FTA request referencing your phone call and compliance history for documentation purposes.
Ready to Apply for First Time Abatement?
Use our FTA eligibility checker and document preparation tools to maximize your chances of approval.
Check FTA Eligibility →