No More Calls or Forms: First-Time Abatement Now Automatic

Beginning with 2025 tax returns filed during the upcoming season, the IRS will automatically grant first-time penalty abatement (FTA) relief to taxpayers who meet existing eligibility requirements—meaning taxpayers no longer have to submit a formal request or call to ask for relief if they qualify.

What Automatic FTA Means

·         Qualified taxpayers (those who haven’t had similar penalties in the last three years and are otherwise tax-compliant) will have failure-to-file, failure-to-pay, and failure-to-deposit penalties automatically removed if they’re assessed on tax year 2025 or later returns.

·         Previously, practitioners or taxpayers needed to actively request this relief by contacting the IRS or filing Form 843, which will now be unnecessary for eligible cases.

Eligibility Highlights

·         Taxpayer must have filed required returns and paid or arranged to pay taxes for the year in question.

·         No similar penalties must have been assessed during the prior three years (except those abated for non-FTA reasons).

·         Applies only for certain penalty types: failure-to-file, failure-to-pay, and failure-to-deposit—not for accuracy-related or fraud penalties.

Practitioner and Compliance Impact

·         The new system will reduce administrative workload for tax professionals and speed up relief for affected taxpayers.

·         However, practitioners must ensure clients do not have prior ineligible penalties, since the IRS will use an automated evaluation—any prior penalty for the same tax type may automatically disqualify the taxpayer from abatement for the new year.

 Have an IRS Tax Problem?

     Contact the Tax Lawyers at

Marini & Associates, P.A. 

for a FREE Tax HELP Contact us at:
www.TaxAid.com or www.OVDPLaw.com
or Toll Free at 888 8TAXAID (888-882-9243)

Sources

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