(If this is not the appropriate SE for this question, I apologize and would be happy to be directed elsewhere. Thank you.)
I recently found out that I didn't declare a distribution from an inherited IRA in 2020, and have received a substantial understatement of income tax penalty. The mistake was an honest one, and I'm trying to have the penalty eliminated, though not making much progress.
In my research I've noticed the IRS can eliminate penalties via First Time Abate, which by my understanding is their way of forgiving a mistake if it was your first one and you have a history of being tax compliant. What is quite frustrating in my case is that this relief is not offered for accuracy-related penalties such as mine, but only offered for three specific penalties: Failure to File, Failure to Pay, and Failure to Deposit. So it seems that a taxpayer who doesn't file a return at all is eligible for First Time Abate, but someone like me who makes a good faith effort to file a return, which ends up being inaccurate, is not eligible for First Time Abate.
Why might the IRS limit First Time Abate to only some penalties? Specifically, why aren't accuracy-related penalties eligible for First Time Abate?