The IRS will provide penalty relief to about 1 million taxpayers automatically starting next year, the national taxpayer advocate (NTA) said during a session at the AICPA National Tax Conference.
The IRS will offer first-time abatements (FTAs) to taxpayers who file their return late, provided they meet certain criteria, said NTA Erin Collins, who heads the Taxpayer Advocate Service (TAS). Those criteria include having no unreversed penalties in the preceding three tax years, except estimated tax penalties.
Collins estimated that about 1 million taxpayers, most of whom are lower-income, qualify for the FTA annually, but don’t know that they must ask for it. That will change as of April 15, 2026, the deadline for filing 2025 returns. Learn more.