Learn the 5 steps that tax resolution specialists must use to craft and submit a successful IRS First Time Penalty Abatement letter. The firsttime penalty abatement allows certain taxpayers to remove a penalty from their record or get a refund for one they already paid.The following pages contain templates to request penalty abatement on behalf of your clients when certain criteria are met. We have provided sample letters that you can use to request waivers of several different types of IRS penalties. Find out about the IRS First Time Penalty Abatement policy and if you qualify for administrative relief from a penalty. To qualify for penalty abatement, you'll need to offer what the IRS considers a suitable reason for failing to pay your taxes or paying your taxes late. Are You Eligible for First Time Tax Penalty Abatement? The IRS permits the abatement of penalties if taxpayers fail to comply with timely tax payment due to a reasonable cause. Some other major red flags that can help tip you off to an IRS scam include:. If I missed the due date for filing the estate tax return, can I get an extension of time to elect portability?