05/22/2026
New Abatement Program is on the Horizon
The IRS is preparing to roll out an automatic penalty relief program that could benefit millions of taxpayers with a strong compliance history. According to National Taxpayer Advocate Erin Collins, the new process will automatically remove certain penalties for eligible taxpayers beginning with penalties assessed for tax year 2025.
Currently, taxpayers must request first-time abatement relief by phone or mail if they have not received penalties or failed to file returns during the previous three years. The relief applies to failure-to-file, failure-to-pay and failure-to-deposit penalties. Collins said the IRS delayed implementation while updating its systems to identify eligible taxpayers and automatically process abatements.
Eligible taxpayers will receive notices explaining that penalties were not assessed due to their clean compliance history and reminding them to remain timely with future filings and payments. Collins previously estimated that 1 to 2 million taxpayers qualified for the relief without realizing the option existed, making the change especially significant for practitioners advising compliant clients.
