Can I ask for a First Time Abatement (FTA) after already paying the IRS penalty?

Do you know what the success rate is for these FTA requests? I'm in a similar situation but worried about wasting my time if they almost always deny them.

The success rate for First Time Abatement requests is actually quite high when the taxpayer truly qualifies. The IRS has specific criteria - you need to have filed all required returns and have no penalties for the 3 prior tax years. If you meet those conditions, approval is fairly routine. The IRS designed this program specifically to help otherwise compliant taxpayers who made a one-time mistake, so they're generally reasonable about granting these when the criteria are met. As for time investment, the letter doesn't need to be complex - just a page explaining your situation, your clean history, and a clear request for the First Time Abatement. The potential savings make it worth the small effort.

Was it difficult to get through to the IRS on the phone? I've been trying for days and can't get a human. Did taxr.ai help with that part too?

That website looks interesting but I'm skeptical. How exactly does it work? Did you have to upload your actual tax documents with all your personal info?

Getting through to the IRS definitely took some patience. I called right when they opened (7am in my time zone) and still waited about 35 minutes. Some people have better luck calling mid-week or later in the day. The taxr.ai site doesn't handle the actual calling part, it just helps you prepare what to say and understand your situation. Regarding document security, I was hesitant too at first. The site uses secure encryption and you can actually black out sensitive info like SSN before uploading. It just needs to see the penalty type, amount, and tax period information to give proper guidance. The analysis happens instantly and they don't store your documents after processing.

How much does that service cost? Seems fishy that something like this would even need to exist. Why can't the IRS just staff their phone lines properly?

I don't understand how this works. Do they just keep calling the IRS until they get through? How is that faster than me doing it myself?

I don't recall the exact cost, but it was reasonable enough that I felt it was worth it to avoid wasting hours of my day on hold. And I completely agree - it's ridiculous that third-party services need to exist because the IRS is so understaffed. Unfortunately, that's the reality we're dealing with right now. They use an automated system that continually redials and navigates the IRS phone tree, holding your place in line. It's faster because their system can do this 24/7 without tying up your phone. They have specialized technology that can stay in the queue while you go about your day. When they're about to connect with an agent, you get a call and have about 30 seconds to join before they transfer the IRS agent to you.

Thanks for this advice! Looking at my notice now, I think there might actually be both types of penalties. Would I be eligible for FTA on both the late filing and late payment penalties? Or just one of them?

You can absolutely request First Time Abatement for both penalties! The FTA can cover failure-to-file, failure-to-pay, and failure-to-deposit penalties. Just make sure to specify in your request that you're asking for abatement of all penalties assessed for that tax year. Many people don't realize that multiple penalties can be covered under a single FTA request, as long as they're all for the same tax period. The important thing is to clearly identify all the penalty types in your request so nothing gets overlooked.

I tried using the online account for this last year and couldn't find any way to submit a penalty abatement request. Ended up having to call. The online services seem limited to viewing your account, making payments, and getting transcripts.