What is first-time abatement?
An administrative waiver the IRS has offered since 2001. It removes certain penalties for a single tax period when the taxpayer's compliance history is good, without needing to show a reason such as illness or disaster. It is applied before reasonable cause is considered.
Which penalties does it cover?
| Covered | Not covered |
|---|---|
| Failure to file a return on time | Estimated tax underpayment penalty |
| Failure to pay tax on time | Information return penalties, including Form 5472 |
| Failure to deposit payroll taxes | Accuracy-related penalties |
| Late Form 1065 and Form 1120-S, per owner | The penalty for an incomplete Form 1065 or 1120-S |
Interest is not removed, except to the extent it relates to a penalty that is removed.
Who qualifies?
Clean penalty history
No significant penalties for the three tax years before the year in question, or penalties that were removed for reasons other than first-time abatement.
All returns filed
Every currently required return filed, or a valid extension in place.
Tax paid or arranged
The tax due paid, or an installment agreement in place and being kept.
It applies to one period. If penalties exist in several years, it is generally given for the earliest.
How do you ask for it?
- By phone, calling the number on the penalty notice. Many requests are granted during the call.
- In writing, replying to the notice and asking for first-time abatement.
- On Form 843, Claim for Refund and Request for Abatement, if the penalty has been paid and you want it refunded.
A tax professional with authorization can ask on your behalf.
Should you use it now or save it?
If you also have a strong reasonable cause argument, it can be worth making that case, keeping first-time abatement for a later year. For small penalties, taking the waiver now is usually simplest. See late filing and late payment penalties.
If first-time abatement is not available, see reasonable cause.
Does it apply to partnerships and S corporations?
Yes, for the per-owner late filing penalty. The IRS's own guidance to examiners confirms first-time abatement applies to those penalties. Small partnerships may also qualify for separate relief. See late partnership and S corp returns.
Paying a penalty you could have removed?
We check your penalty notices for first-time abatement and reasonable cause, and make the request for you.
Questions people ask
What is IRS first-time penalty abatement?
An administrative waiver that removes failure-to-file, failure-to-pay and failure-to-deposit penalties for one tax period for taxpayers with a clean record.
Who qualifies for first-time abatement?
Taxpayers with no significant penalties in the previous three years, all required returns filed, and the tax paid or a payment plan in place.
Does first-time abatement apply to the Form 5472 penalty?
No. It does not cover information return penalties.
How do I request first-time abatement?
Call the number on the notice, write to the IRS, or file Form 843 if the penalty has been paid.
Sources
Every fee, date and rule on this page was taken from these official and primary sources.
- IRS: Penalty relief due to first-time abatement or other administrative waiver
- IRS: Penalty handling memorandum SBSE-04-0625-0025 on IRC 6698 and 6699 and first-time abatement (June 2025)
- IRS: Form 843, Claim for Refund and Request for Abatement
- Internal Revenue Manual 20.1.1.3.3.2.1: First Time Abate
Rules and fees change. If you are reading this long after September 30, 2026, confirm the figures with the source before you rely on them.
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This guide is general information. It is not tax or legal advice for your situation.