As of the 2025 filing season, the IRS is applying First-Time Abatement automatically - without requiring taxpayers to request it - for qualifying penalties on individual returns.
IRVINE, CA / ACCESS Newswire / June 8, 2026 / For the first time, a key form of IRS penalty relief is being granted automatically. As of returns filed in 2026 for tax year 2025, the IRS now applies First-Time Abatement (FTA) without requiring taxpayers to submit a written request - provided they meet a clean compliance history and have not previously used the relief in the prior three years. The change quietly reshapes how many first-time filers experience an IRS penalty notice.
"For years, taxpayers had to know about First-Time Abatement and ask for it by name - or pay penalties they were legally entitled to have removed," said a spokesperson for Clear Start Tax, a national tax relief and resolution firm. "Automating it means the IRS will, in theory, apply the relief without the taxpayer lifting a finger. But automation only works for taxpayers the system can clearly identify as eligible."
FTA can remove failure-to-file, failure-to-pay, and failure-to-deposit penalties on a single tax period. To qualify, a taxpayer generally must have filed all required returns, paid or arranged to pay any tax due, and not have had a similar penalty waived in the three prior tax years. The IRS has historically processed these requests manually - meaning many eligible taxpayers paid penalties they did not have to pay, simply because they did not know to ask.
"The risk in any automated relief is the same risk in any automated decision," the spokesperson added. "If the IRS's record of a taxpayer is incomplete or mismatched, the relief may not apply when it should. Taxpayers who see a penalty assessed and believe they qualify should still review their notice carefully."
For taxpayers receiving a penalty notice in 2026, Clear Start Tax recommends:
Review the notice to confirm whether First-Time Abatement was applied
Confirm prior compliance - all required returns filed, no similar penalty in the past three years
Respond promptly if relief was not applied automatically and eligibility is met
Address any unpaid balance separately, as FTA does not eliminate the underlying tax
Plain-English guides to each IRS program, along with general eligibility information, are also available through independent consumer resources such as Fresh Start Relief (freshstartrelief.com).
By answering a few simple questions, taxpayers can find out if they're eligible for the IRS Fresh Start Program and take the first step toward resolving their tax debt.
"Automation is a step in the right direction, but it doesn't replace the value of knowing what relief options exist," the spokesperson said. "Taxpayers who understand the IRS's programs - penalty abatement, installment plans, and others - are the ones who actually use them when it matters."
About Clear Start Tax
Clear Start Tax is a nationwide tax resolution and relief firm specializing in helping individuals and businesses address IRS and state tax issues. With a team of experienced tax professionals, the company provides tailored strategies for resolving back taxes, negotiating settlements, and achieving long-term compliance.
Need Help With Back Taxes?
Click the link below:
https://clearstarttax.com/qualifytoday/
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Contact Information
Clear Start Tax
Corporate Communications Department
tech@clearstarttax.com
(949) 800-4011
SOURCE: Clear Start Tax
View the original press release on ACCESS Newswire:
https://www.accessnewswire.com/newsroom/en/business-and-professional-services/automatic-first-time-penalty-abatement-arrives-in-2026-clear-sta-1172916
