AICPA urges IRS to expand First Time Abatement program

In a letter to the tax agency, the AICPA urged the IRS to expand the First Time Abatement program to include more tax and information return penalties.

The AICPA also recommended that taxpayers be allowed to reverse automatically applied FTA relief when they demonstrate reasonable cause, so they can save their one-time abatement for a future need.

Expanding and refining the FTA program would reduce IRS administrative burdens, help taxpayers better understand available penalty relief options, and support voluntary compliance, the AICPA said.