I had to pay a Penalty to the IRS because my previous employer’s financial institution distributed to me a portion of my deferred compensation too early after retirement (by 5 months). This was categorized as a prohibited acceleration under Section 409A of the Internal Revenue Code. To correct this error, I was told to return this distribution and I was also required to file an amended 2020 tax return that includes a payment to the IRS that reflects a Penalty calculated by multiplying 20% of my distribution. My question is if this type of Penalty can be abated using First Time Abate with the IRS?
