IRS to Auto-Waive Penalties for Eligible Taxpayers, Closing Gap Between Prepared and Unrepresented Filers

Starting summer 2026, the IRS will automatically exempt eligible taxpayers from first-time penalties—no request required. The shift replaces First Time Abate, which required taxpayers or their preparers to call the IRS and ask for relief. Historically, the program skewed toward taxpayers with professional representation; unrepresented filers often simply paid. Automatic application targets that inequality. Eligibility remains unchanged: three years of clean compliance history and current filing status. Implementation details remain undefined.