If you've been hit with IRS penalties for failing to file, pay, or deposit taxes on time, the costs can add up quickly. But there’s good news—if this is your first offense, you may qualify for the IRS’s First Time Penalty Abatement (FTA) program.
We guide taxpayers through the FTA process, helping them reduce or eliminate penalties and get back on solid financial ground. Here’s what you need to know.
What Is First Time Penalty Abatement?
The First Time Penalty Abatement is a one-time administrative waiver offered by the IRS. It allows qualifying taxpayers to remove certain penalties for:
- Failing to file a tax return
- Failing to pay on time
- Failing to deposit certain taxes as required
The FTA does not apply to interest or the underlying tax balance—only the penalties.
Who Might Qualify for FTA? You may be eligible for FTA if:
ü You filed all required tax returns or filed an extension.
ü You’ve paid or arranged to pay any tax due.
ü You haven’t had any penalties (except estimated tax penalties) in the prior three years.
FTA is available for both individual and business taxpayers and applies only to a single tax period.
Example: How FTA Could Help a Client
Mark, a small business owner, was hit with failure-to-file and failure-to-pay penalties totaling $7,500 after missing the deadline for his corporate return. It was his first time encountering tax trouble, and he had already paid the tax due in full.
With help from us:
- We confirmed Mark met the FTA eligibility criteria.
- We prepared and submitted a penalty abatement request.
- We followed up with the IRS and secured approval.
The IRS removed the $7,500 in penalties, giving Mark much-needed relief and peace of mind.
How We Can Help
Even though FTA is an administrative waiver, getting it approved isn’t always simple. At Vicki L Healy CPA, PA, we:
ü Verify your eligibility and determine if FTA is the best option.
ü Prepare a precise and effective penalty abatement request.
ü Communicate directly with the IRS on your behalf.
ü Explore additional resolution strategies if FTA isn’t available.
If you or someone you know has been hit with IRS penalties, contact us today for a free consultation. Let’s see if you qualify for First Time Penalty Abatement and start working toward a clean slate.