First Time Abatement (FTA)

Definition

A waiver offered by the IRS that removes certain penalties for taxpayers who have a clean compliance history over the prior three years with no penalties assessed. It applies to failure-to-file, failure-to-pay, and failure-to-deposit penalties, and can be requested without supporting documentation beyond the verbal or written request itself. FTA is one of the most commonly granted forms of penalty relief and requires no showing of special circumstances.