First-Time Penalty Abatement – How Oklahoma Taxpayers Can Remove IRS Penalties
Owe thousands in IRS penalties from late filing or late payment?
There’s good news: you might be able to remove them — even without financial hardship. The IRS’s First-Time Penalty Abatement (FTA) program allows eligible taxpayers in Oklahoma to erase penalties with a simple, one-time request.
At Summit Tax Relief, we help clients reduce or eliminate penalties as part of broader tax resolution strategies. Here’s what you need to know.
What Is First-Time Penalty Abatement (FTA)?
The FTA is an IRS policy that allows you to request automatic removal of certain penalties if:
- You’ve filed and paid on time for the past 3 years
- You have no significant IRS penalties in your history
- You’re otherwise compliant or working to become compliant
It applies to penalties like:
- Failure to file (FTF)
- Failure to pay (FTP)
- Failure to deposit (business tax penalties)
Who Qualifies for FTA?
To qualify, you must:
- Have no prior penalties for the same type of return (1040, 941, etc.) in the past three years
- Have filed all required returns
- Have paid or arranged to pay any tax due
You do not need to prove financial hardship, medical crisis, or other extreme events. That makes FTA one of the fastest, cleanest ways to reduce IRS debt.
When FTA Doesn’t Apply
- You’ve had a similar penalty within the last 3 years
- You’re under active audit or criminal investigation
- The penalty was for fraud or willful neglect
- You have missing or unfiled returns
FTA is not available repeatedly — it’s a one-time program per taxpayer type.
How Much Can FTA Save?
| Penalty Type | Potential Cost |
|---|---|
| Failure to File (FTF) | Up to 25% of unpaid tax |
| Failure to Pay (FTP) | Up to 25%, accrued monthly |
| Failure to Deposit (941/1120/1065) | Additional penalties on payroll/business returns |
On a $20,000 tax debt, FTA can easily reduce your total balance by $3,000 to $6,000 or more.
Oklahoma Case Example
Client: Tulsa-based freelance photographer
- Filed 3 months late and owed $9,300
- IRS added $1,275 in failure-to-file and failure-to-pay penalties
- We confirmed clean filing history, filed request for FTA
- IRS approved full penalty removal in 14 days — client saved $1,275
How to Request FTA
At Summit Tax Relief, we request FTA using these methods:
1. Call the IRS Practitioner Line
We request abatement under POA — same day, on the record.
2. Write a Formal Request
We prepare and submit a written FTA request citing IRM guidelines and past compliance.
3. Use Form 843 (optional)
In some cases, we file IRS Form 843 – Claim for Refund and Request for Abatement.
If FTA is denied, we can often refile using reasonable cause as an alternative strategy.
Why Work With Summit Tax Relief?
- Based in Oklahoma — we’ve handled dozens of FTA cases across the state
- CPA-led — we know how to present clean cases that get approved
- We don’t just ask — we document, argue, and appeal if necessary
- Flat-fee pricing — no hourly surprises
- FTA is often included as part of your overall resolution strategy
Related Blog Posts (Internal Links)
- Who Qualifies for an IRS Offer in Compromise?
- IRS CP2000 Notice in Oklahoma – What It Means and How to Respond
- IRS Form 4549 – How to Respond to Audit Findings
Get Help Now
If you’ve been hit with IRS penalties — and this is your first time — there’s a good chance we can make them disappear.
Call Summit Tax Relief at (833) 477-4911
Schedule Your Free Strategy Call
FAQ
Q: Can I apply for FTA myself?
A: Yes — but most denials happen due to misunderstanding eligibility. We confirm before filing.
Q: Can businesses get FTA?
A: Yes. It applies to certain business penalties (e.g., failure to deposit, late payroll filings).
Q: What if I don’t qualify for FTA?
A: We may still be able to request
reasonable cause penalty abatement based on your circumstances.
Q: Will this remove interest too?
A: No — FTA removes penalties. Interest usually remains unless tied to the penalty being abated.
📣 About the Author
Marc Boulanger, CPA is the founder of Summit Tax Relief LLC, a boutique tax resolution firm based in Oklahoma City, OK and trusted by high-income individuals and business owners across Oklahoma.
He is the author of Oklahoma Taxpayers' Guide: Taking A Stand Against the IRS: A Step-by-Step Plan for Dealing With Tax Collectors and Unfiled Returns Without Going Broke, available now on Amazon. The book offers a step-by-step plan for resolving IRS tax debt without losing your business, your home, or your peace of mind.
With over a decade of experience resolving high-stakes IRS and State tax matters, Marc brings strategic insight to complex cases involving wage garnishments, bank levies, unfiled returns, and six-figure tax debts. He is known for helping clients reduce or eliminate tax liabilities through expertly negotiated settlements and compliance plans.
Marc is a Certified Public Accountant licensed in California and Oklahoma and holds the designation of Certified Tax Representation Consultant. He is a member of the American Society of Tax Problem Solvers (ASTPS) — the national organization founded by the educators and practitioners who have trained thousands of CPAs, EAs, and tax attorneys in IRS representation strategy.
Every case is handled with discretion, proven methodology, and direct CPA-led representation — not call center scripts.
📍 Learn more at www.summittaxrelief.com or call (833) 477-4911.
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