FIRST TIME TAX DEBT PENALTY ABATEMENT: How it works The IRS has an administrative waiver that provides penalty relief for certain penalties for taxpayers who have a clean compliance history. This waiver is called the IRS’ first-time abatement or “FTA.” FTA has been around since 2001, but few use it to abate their penalties. Let me break down the rules for you. For a list of forms that FTA applies, see this blog post. FTA applies to 3 very common penalties: FTA is primarily directed at three common penalties- failure to pay (“FTP”- 56% of all penalties), failure to file (“FTF” – 12% of all penalties), and the failure to deposit (“FTD”) penalties for employers who remit payroll deposits. S corporation and partnership late filing penalties qualify for FTA: yes, those dreaded late filing penalties for the pass-through entities qualify for FTA. You will have to find someone at the IRS who is aware of this rule to be successful in abating late filing S corp or partnership penalties. Look back 3 years for a clean compliance history: the last three years need to be penalty free, with the exception of the estimated tax penalty. For example, if you have a qualifying penalty in 2018, you cannot have a penalty in 2015-2017 to qualify. CONTINUE READING: https://advancetaxrelief.blogspot.com/2021/11/first-time-tax-debt-penalty-abatement.html ADVANCE TAX RELIEF LLC http://www.advancetaxrelief.com BBB A+ RATED CALL (713)300-3965