Jim Buttonow, CPA, CITP
SVP Post-Filing Tax Services
Published on: December 02, 2021
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The IRS has an administrative waiver that provides penalty relief for taxpayers who meet certain criteria. This waiver is called the IRS’s first time abatement or “FTA” and only applies to certain penalties. The FTA has been around since 2001 but few use it to abate their penalties.
Here are the rules:
How do you find out if you qualify?
The easiest method to understand if you qualify and can use an FTA is to review your IRS account transcripts or ask a tax professional who is familiar with this IRS rule. Transcripts will show penalties applied, by year, and you can apply the rules above to check if you qualify.
Once you qualify, you can call the IRS penalty hotline (855-223-4017, ext. 225) or write the IRS.
For assistance creating a strategy to address your tax issue, visit Jackson Hewitt’s Tax Resolution Hub to see the various ways we can help you.
About the Author
Jim Buttonow, CPA, CITP, is the Senior Vice President for Post-Filing Tax Services at Jackson Hewitt. He’s been a leader in helping taxpayers and tax professionals resolve tax problems with the IRS, where he had worked for 19 years in various compliance-enforcement positions. Prior to his current role, Jim’s consulting practice focused on the areas of tax controversy and tax administration, which included leading product development on tax problem software for tax professionals, testifying before Congress, advocating for IRS transparency and efficiency, and proposing innovative large-scale solutions for taxpayers and tax professionals. Jim is also the author of Tax Problems and Solutions Handbook, a publication aimed at helping tax pros work more effectively in post-filing matters and resolving their clients’ most common tax problems.