FTA 3520

Hello everyone, happy Monday. First time abatement ("FTA") is not applicable for the 3520 and 3520-A late filing penalties, correct? Does anyone disagree?

Doesn't hurt to try calling the practitioner hotline and request it. Get a POA signed first and then call the IRS to abate it (and be near a fax machine for that POA). They'll tell you if it meets the criteria or not. That's probably the easiest thing to do. If they say no, then try reasonable cause. Also, try calling them as soon as they open. I'm on the west coast so I have to call at 5 am my time in order to have a slight chance of getting on hold instead of the "too busy, so sorry" message before they hang up.

So my quick reading shows that it is not eligible. The internal revenue manual for the FTA says it applies to penalties under 6651(a)(1). This paragraph (1) is for the failure to file penalty of a return required under "subchapter A of chapter 61 (other than part III thereof)" which part III includes 6039F - the relevant penalty. AKA your penalty is excluded from the list of eligible penalties for the FTA program.