Who Qualifies for First-Time Penalty Abatement? Your Checklist

Are you wondering if you qualify for First-Time Penalty Abatement? Use this simple checklist to find out and take the first step toward reducing your IRS penalties.

Who Qualifies for First-Time Penalty Abatement?

Eligibility Checklist

1. Clean Compliance History:

   • No penalties (other than estimated tax penalties) in the past three years.
     

2. Filing Compliance:

   • All required tax returns for the past three years have been filed.
     

3. Original Return:

   • The penalty must relate to an original return, not an IRS-prepared Substitute for Return (SFR).
     

What Tax Forms Qualify? Forms eligible for FTA include:

• Individual (1040 series)

• Business (1120, 1120-S, 1065)

• Payroll (941, 940)
  

A taxpayer with a clean history forgot to file their 2022 return on time and incurred a $500 Failure to File penalty. After confirming their compliance with the checklist, they successfully applied for FTA and had the penalty removed.

How Arc&Ledger Can Help We’ll evaluate your eligibility and help you apply for penalty abatement quickly and easily. Get in touch today to start saving.