Exception:

See the Minimum FTF Penalty by Tax Year table below for income tax returns more than 60 days past due.

Before inputting an adjustment on a case with FTF, use CC INTSTD or PIFTF to review the original FTF rates. Use the same percentage rate for abating that was used for assessing the FTF on the same unpaid tax amount. Different penalty rates may apply to different amounts of tax for the same time period. FTF rates are impacted when there is intent to levy, jeopardy assessment (see IRM 20.1.2.3.8.1.1, 1 Percent Penalty Rate—IRC 6651(d)), or an active installment agreement (see IRM 20.1.2.3.8.1.2, 1/4 Percent Penalty Rate—IRC 6651(h)).

When inputting an adjustment in IDRS, compute the FTF penalty manually to determine whether the FTF penalty will recompute when the adjustment posts.