First-Time Penalty Abatement (FTA)
An IRS administrative waiver that removes failure-to-file or failure-to-pay penalties for first-time offenders.
Full Definition
First-Time Abate (FTA) is an administrative waiver the IRS provides to taxpayers with a clean compliance history. The IRS states FTA is transitioning to a new relief called Automatic Exemption from Penalty (AEP), starting Summer 2026, which applies to 2025 returns onward and is applied automatically without a request. Check the current IRS page before assuming you need to ask. The IRS states the conditions as: the same return type filed on time for the prior three years, and for that period either no penalty assessed -- the IRS excepts the estimated tax penalty from this -- or a penalty that was removed for reasonable cause or IRS error. Whether they are met in a given case is determined by the IRS. FTA can remove failure-to-file penalties, failure-to-pay penalties, and failure-to-deposit penalties. You can request FTA by phone or in writing, and the associated interest on abated penalties is also removed.
What to do next
Check the notice or letter you actually received: the dates and instructions printed on it govern, not this page. The IRS page linked in Sources is the authority on the rule itself.
Sources
- Administrative penalty relief (First Time Abate) — Internal Revenue Service, retrieved 2026-08-20
Last reviewed 2026-08-20 by Tax Resolution Clarity editorial.
Sourced to primary IRS materials and editorially reviewed. Not reviewed by a tax professional. Not tax advice.
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Where to go next
The IRS publishes the rules this page describes. Your own notice governs your dates.