IRS Modifies Policy for First-Time Penalty Relief


The Internal Revenue Service has modified its "first time abate" policy, which provides a one-time consideration of penalty relief, based on the taxpayer's compliance history, for taxpayers who have been subjected to a first-time penalty charge.


The recently updated policy modifies the IRS first time abate policy for penalty relief.  This type of penalty removal is a one-time consideration available only for a first-time penalty charge and based on taxpayer's compliance history.


The FTA relief only apples to a single tax period for a taxpayer. 


Taxpayers who have been billed for penalty charges who feel they have reasonable cause, should send their explanations with their bill to their service center. 


Please call us at 616.453.6000 for advice or assistance if you receive any IRS correspondence.


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