The IRS created the First-Time Penalty Abatement program to give taxpayers who have a clean compliance history a second chance. It applies to these common penalties:

  • Failure to File (FTF)
  • Failure to Pay (FTP)
  • Failure to Deposit (FTD) payroll taxes

FTA is available once per taxpayer, per type of return, and is typically granted for the most recent tax year only.

 

Do You Qualify?

You may be eligible if:

  • You’ve filed all required returns (or filed an extension)
  • You’ve paid (or arranged to pay) any taxes due
  • You haven’t had any IRS penalties in the past 3 years

Sounds simple, right? But here’s the catch:

Most IRS reps won’t tell you about FTA unless you specifically request it—and if your accountant doesn’t know how to frame the request properly, it may be denied.

 

How We Get It Done

At Polaris, we handle the entire process:

  • Pull your IRS account transcripts to confirm compliance
  • Draft a targeted penalty abatement letter
  • Reference Internal Revenue Manual (IRM) Section 20.1.1.3.6.1 for First-Time Abatement policy
  • Submit the request to the proper IRS unit
  • Follow up to confirm processing and resolution

We’ve helped clients eliminate penalties ranging from $500 to over $25,000 using FTA and other abatement strategies.

Want proof? Here’s how we helped one client eliminate a $25,000 IRS penalty due to a misclassified entity filing.

What If You Don’t Qualify?

FTA is just one strategy. If you’re not eligible, we can still:

  • Draft a reasonable cause letter based on documented hardship, reliance on a tax professional, or other IRS-accepted reasons
  • Submit a Collection Due Process (CDP) request or CAP appeal
  • Help you set up a payment plan and request penalty reduction based on financial condition

Based in Plantation, Helping Clients Nationwide

Polaris Tax & Accounting is based in Plantation, FL, and we work with:

  • Individuals who missed filing deadlines
  • Small businesses hit with payroll tax penalties
  • Foreign-owned entities who received international filing penalties

We don’t just prepare returns—we help you fix problems and avoid new ones.

Final Word

IRS penalties are scary—but they’re not always final. With the right strategy, you may be able to erase them.

Don’t assume the IRS is right. Don’t let your accountant say, “just pay it.” Call Polaris first.

📞 954-423-3577
🌐 https://polaristaxandaccounting.com/services/irs-tax-problems/