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Tool 7 · Chapter 12 · First-Time Abate

Does your history fit First-Time Abate?

A yes/no screen of the IRS compliance-history criteria for first-time penalty relief. Education only; the IRS decides.

Start the yes/no check

What First-Time Abate covers

  • It can remove specified failure-to-file, failure-to-pay and failure-to-deposit penalties for a single tax period. It does not remove the tax itself or every kind of penalty.
  • It is based on your compliance history, not a hardship story. You do not need to explain why you were late.
  • The lookback is generally the three prior tax years (or twelve prior quarters for quarterly returns) for the same return type, including histories tied to a joint return.
  • The unpaid tax does not need to be fully paid before you ask. The failure-to-pay penalty can keep accruing until the tax is paid, so a further request may be needed later.
  • Penalty-related interest is adjusted when a penalty is removed. Interest on the tax itself is not erased, and filing duties and notice deadlines continue.
IRS update on automatic relief. The IRS has announced that, starting summer 2026, it will begin applying first-time penalty relief automatically during original processing of eligible 2025 annual returns and 2026 quarterly returns onward. If an IRS notice confirms automatic relief was applied, no request is needed. First-Time Abate can still be requested for earlier periods and for eligible assessed penalties not considered automatically. Automatic relief does not apply to everyone; check the sources below, and the IRS decides each case.

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0 of 8 answered

01Is the charge a covered late-filing, late-payment or failure-to-deposit penalty?

Check the penalty name on the notice or transcript. FTA covers failure to file under IRC 6651(a)(1), 6698(a)(1) or 6699(a)(1), failure to pay under IRC 6651(a)(2)/(3), and failure to deposit under IRC 6656. Estimated-tax, accuracy-related, fraud and other penalties are not covered by this check. If a notice has several penalties, check one covered penalty and period at a time.

02Is the penalty on a regularly required tax return that can receive FTA?

This includes ordinary individual, corporate, partnership, S corporation and employment tax returns, subject to their specific rules. Answer No for event-based returns, the daily delinquency penalty, Forms 1099/W-2 information-reporting penalties, and excluded filings such as Forms 706, 709, 990, 3520 or 3520-A. Not every late form qualifies.

03Were required same-type returns filed on time, or not required, throughout the lookback?

Review the three tax years before the penalized period, or 12 consecutive quarters for a quarterly filer—not simply the last three calendar years from today. Include valid filing extensions. A period with no filing requirement may qualify for FTA, but do not assume that establishes automatic AEP relief. If a prior return was late, answer No for an IRS review: the manual has account-specific rules, including special corporate restrictions.

04Does the lookback show no disqualifying penalties remaining on those returns?

An estimated-tax penalty alone does not spoil the history. Penalties removed for reasonable cause or IRS error may also leave a clean record. Other unpaid or paid-but-unreversed penalties can matter: paying a penalty does not remove its history. For a joint return, check both spouses and relevant earlier joint or separate returns, not only the current primary taxpayer.

05Is the lookback free of earlier FTA or tolerance-based penalty relief?

A penalty removed through FTA is different from one removed for reasonable cause or IRS error. Prior FTA or tolerance relief normally needs IRS review and can block another waiver in the lookback. Special corrections and certain 2020–2021 relief exceptions may change the answer; answer No and ask for a record review rather than assuming permanent ineligibility.

06Are all currently required returns filed, or covered by a valid filing extension?

This is a compliance and preparation reminder, not an automatic FTA denial in this check. Address missing returns and confirm filing requirements with the IRS. An extension to file is not an extension to pay.

07Is the tax paid, or is an approved payment arrangement in place?

Answer No if neither is true. An unpaid balance alone does not prevent requesting FTA: the IRS manual permits failure-to-pay abatement while tax remains unpaid. Paying or arranging payment addresses the remaining debt; FTA does not cancel the tax, and further failure-to-pay penalties may accrue until the tax is fully paid.

08Does this check concern a business or employment tax return?

Answer Yes for a corporate, partnership, S corporation or employer return so the additional business checks appear. For an individual Form 1040, including a self-employed person’s Schedule C on that return, answer No.

Where this comes from
Chapter 12: Penalties Aren't Always the Final Word
Gather evidence
Tool 7: penalty relief checklist
Ready to ask
First-Time Abate model letter