FIRST-TIME PENALTY ABATEMENT REQUEST

IRS ADMINISTRATIVE WAIVER REQUEST (FTA)

IMPORTANT 2026 UPDATE

Beginning in 2026, the IRS will automatically apply First-Time Abatement (FTA) to qualifying taxpayers for tax years 2025 and forward. However, for prior tax years or if automatic application does not occur, this request template may still be used.

TAXPAYER INFORMATION

Taxpayer Name: [FULL LEGAL NAME]

Social Security Number / EIN: [SSN/EIN]

Current Address:
[STREET ADDRESS]
[CITY, STATE ZIP]

Daytime Telephone: [PHONE NUMBER]

Email Address: [EMAIL]

IRS Notice Number (if applicable): [NOTICE NUMBER]

IRS Notice Date: [DATE]

COVER LETTER

[DATE]

Internal Revenue Service
[ADDRESS FROM IRS NOTICE]

Via Certified Mail No.: [TRACKING NUMBER]

Re: Request for First-Time Penalty Abatement (FTA)
Taxpayer: [TAXPAYER NAME]
Social Security Number/EIN: [NUMBER]
Tax Year(s): [YEAR(S)]
Tax Form: [FORM NUMBER]
Penalty Type(s): [PENALTY DESCRIPTION]
Total Penalty Amount: $[AMOUNT]

Dear Sir or Madam:

I am writing to request abatement of the [PENALTY TYPE] penalty(ies) assessed for the tax year(s) referenced above under the IRS First-Time Penalty Abatement (FTA) administrative waiver policy pursuant to IRM 20.1.1.3.6.1.

I have a clean compliance history for the prior three tax years and believe I qualify for this administrative waiver.

SECTION 1: PENALTY INFORMATION

Penalties for Which FTA is Requested:

Note: FTA applies to failure to file, failure to pay, and failure to deposit penalties. It does not apply to estimated tax penalties (IRC § 6654), accuracy-related penalties (IRC § 6662), or fraud penalties.

SECTION 2: FTA ELIGIBILITY CRITERIA

The taxpayer certifies the following three eligibility criteria are met:

1. Filing Compliance (Prior 3 Years)

☐ All required tax returns have been filed for the three tax years prior to the penalty year
☐ Valid extensions were filed when necessary
☐ No unfiled returns exist

2. Payment Compliance

☐ All taxes due have been paid, OR
☐ Taxpayer is currently in an approved payment arrangement (installment agreement)
☐ Taxpayer is current on all installment agreement payments

Current Payment Status:
☐ All taxes paid in full
☐ Installment agreement in place - Agreement Date: [DATE]
☐ Current on payments through: [DATE]

3. Clean Penalty History (Prior 3 Years)

☐ No penalties of the same type have been assessed for the three prior tax years
☐ No FTA administrative waiver has been granted in the prior three years

SECTION 3: ADDITIONAL REQUIREMENTS FOR FAILURE TO DEPOSIT PENALTY

If requesting FTA for failure to deposit (FTD) penalty under IRC § 6656:

☐ No more than three FTD penalty waiver codes in the prior three years
☐ FTD penalty is not for EFTPS avoidance
☐ Taxpayer has properly used EFTPS for deposits when required

SECTION 4: COMPLIANCE VERIFICATION

Provide the following information to support compliance history:

Filing History Verification:
- IRS Account Transcript attached: ☐ Yes ☐ No
- Tax return copies attached: ☐ Yes ☐ No

Payment History Verification:
- IRS Account Transcript showing payments: ☐ Yes ☐ No
- Bank records showing tax payments: ☐ Yes ☐ No

Penalty History Verification:
- IRS Account Transcript showing no prior penalties: ☐ Yes ☐ No

SECTION 5: STATEMENT OF COMPLIANCE

I, [TAXPAYER NAME], hereby certify that:

1. I have filed all required federal tax returns for the three tax years preceding the tax year for which this penalty abatement is requested.

2. I have paid all taxes due, or I am currently in an approved payment arrangement and am current on all required payments.

3. I have not been assessed any penalties of the same type (failure to file, failure to pay, or failure to deposit) for the three tax years preceding the penalty year.

4. I have not received a First-Time Abatement administrative waiver for any penalty in the prior three years.

5. I understand that this is an administrative waiver based on my good compliance history and not a determination that I had reasonable cause for the failure.

SECTION 6: ENCLOSURES

☐ Copy of IRS notice assessing the penalty
☐ IRS Account Transcript (Form 4506-T can be used to request)
☐ Copy of tax return for the penalty year
☐ Proof of payment (if applicable)
☐ Installment agreement documentation (if applicable)
☐ Form 2848, Power of Attorney (if represented)

SECTION 7: TAXPAYER CERTIFICATION

Under penalties of perjury, I declare that the information provided in this request is true, correct, and complete to the best of my knowledge and belief.

Taxpayer Signature: ___________________________________

Printed Name: [TAXPAYER NAME]

Date: [DATE]

SECTION 8: REPRESENTATIVE INFORMATION (IF APPLICABLE)

Representative Name: [NAME]

Firm Name: [FIRM]

Address:
[ADDRESS]

Telephone: [PHONE]

Email: [EMAIL]

CAF Number: [CAF NUMBER]

☐ Form 2848, Power of Attorney and Declaration of Representative is attached

TELEPHONE REQUEST OPTION

FTA may be requested by phone. Call:

IRS Customer Service: 1-800-829-1040

When calling, state: "I would like to request First-Time Penalty Abatement for [tax year]."

Have ready:
- Social Security Number or EIN
- Tax year for which penalty was assessed
- Type of penalty (failure to file, failure to pay, or failure to deposit)
- Penalty amount

Note: The IRS representative can immediately verify eligibility and apply FTA during the call if you qualify.

MAILING INSTRUCTIONS

If submitting by mail:

Mail to the address shown on your IRS notice, or:

Internal Revenue Service
[IRS SERVICE CENTER ADDRESS FOR YOUR STATE]

Recommended: Send via certified mail with return receipt requested

Certified Mail Number: ______________________

Date Mailed: ______________________

IF FTA IS DENIED

If the IRS determines you do not qualify for First-Time Abatement:

1. Request Written Explanation: Ask the IRS to provide the specific reason for denial

2. Verify Compliance History: Review your IRS transcripts to confirm compliance

3. Request Reasonable Cause Abatement: If FTA does not apply, you may still qualify for penalty abatement based on reasonable cause

4. Appeal Rights: You may appeal the denial to the IRS Independent Office of Appeals

LEGAL AUTHORITY

IRS Internal Revenue Manual References:

• IRM 20.1.1.3.6.1 - First Time Abate (FTA)
• IRM 20.1.1.3.6.1.1 - Criteria for First Time Abate

Key FTA Criteria from IRM 20.1.1.3.6.1:

The IRS will grant FTA administrative relief if the taxpayer meets all of the following criteria:

1. Filing Compliance: The taxpayer filed (or filed a valid extension for) the same type of return for the past 3 tax years before the tax year you received the penalty.

2. Payment Compliance: The taxpayer paid, or arranged to pay, any tax due.

3. Penalty-Free History: The taxpayer doesn't have any prior penalties (except the estimated tax penalty) for the same type of return for the past 3 tax years.

IMPORTANT NOTES

1. Automatic Application (2026+): Starting in 2026, the IRS will automatically apply FTA to qualifying taxpayers for tax years 2025 and forward.

2. One-Time Relief: FTA is available once every three years. Using FTA will reset the three-year clean penalty history requirement.

3. Interest Not Abated: FTA removes the penalty only, not interest. However, interest will be reduced proportionally to the penalty abated.

4. Priority Over Reasonable Cause: If you request reasonable cause abatement but qualify for FTA, the IRS will apply FTA instead (preserving your reasonable cause argument for future use).

5. No Supporting Documentation Required: Unlike reasonable cause requests, FTA does not require you to provide documentation of circumstances. Eligibility is based solely on your compliance history.

6. Business Taxpayers: FTA is available for businesses, including failure to deposit penalties for employment taxes.

This template is provided for informational purposes and should be reviewed by qualified tax counsel before submission to the IRS.