Penalty Abatement Analyzer

Check First-Time Abate and Automatic Exemption from Penalty eligibility, and rank reasonable-cause arguments.

Penalty type

Tax year

This is a quarterly return (Form 940/941/943/944/945/CT-1), not an annual return

AEP/FTA eligibility phases in on different timelines for annual vs. quarterly returns — see the AEP/FTA band note in the result below.

First-Time Abate eligibility

Was the same return type timely filed for each of the prior 3 years, and are all currently required returns filed (or validly extended)?Is the client's balance paid, or in a valid installment agreement/currently-not-collectible status?Is the client free of any penalty in the prior 3 years that was NOT abated specifically for reasonable cause or IRS error? Disregard an estimated tax penalty. A penalty abated for a different reason — a prior FTA/AEP grant, or a tolerance waiver — still counts against this gate; check the transcript for the abatement reason, not just whether one occurred.

Has this penalty already been resolved automatically (First-Time Abate or the IRS's new Automatic Exemption from Penalty program) — check the account transcript if unsure?

Reasonable cause factors

Select any that apply and add supporting facts.

Death, serious illness, or unavoidable absence

Fire, casualty, natural disaster, or other disturbance

Unable to obtain records

Erroneous advice or reliance on a tax professional

Other supporting facts

Download the Penalty Abatement Analyzer Compliance Card (PDF) — for your §10.36 AI-tool file