Do I have to apply for the automatic IRS penalty relief introduced in July 2026?

No. In the IRS's own words, taxpayers do not need to take action to receive this relief, and if you are eligible the IRS will apply it and issue a notice confirming that the relief was granted. It covers failure to file, failure to pay and failure to deposit penalties where the penalty is on tax year 2025 or later, you filed the same type of return on time for the previous three years, and you paid what you owed in those years. If that describes you, wait for the notice rather than calling.

Does the interest come off too when an IRS penalty is removed?

Interest charged on a penalty that is later removed is generally adjusted along with it. Interest on the underlying tax you owed is a separate matter and is not usually removed. Your notice itemizes what is being charged, which is the place to start when working out what would actually come off.

I cannot pay the tax itself. Can I still ask about the penalty?

Yes. Removing a penalty and arranging to pay the tax are two different conversations, and you can raise both in the same call. The toll-free number to call is printed on the notice itself, so you do not need to hunt for it.

Do I need to name the relief program when I call the IRS?

No. The IRS states you do not need to specify the relief you are seeking or provide supporting documents for the standard compliance-history relief. Say that you would like penalty relief based on your compliance history, and the IRS checks your record while you are on the line.

How long does IRS penalty relief take?

A phone request can sometimes be resolved on the call itself. Written requests take considerably longer, so send them well before any deadline on your notice and keep a copy of what you sent. Note the date, time, and the name and badge number of anyone you speak to, because that record is the most useful thing you will have if it has to be chased later.

I already paid the penalty. Is it too late to get it back?

Not necessarily. If you would have qualified for relief at the time, you can claim it back using Form 843, which is the claim for refund and request for abatement. There is a time limit on refund claims and once a year closes it does not reopen, so it is worth doing sooner rather than later.

IRS Penalty Relief, Updated July 30, 2026

How to get an IRS penalty removed, and when you do not have to ask

On July 8, 2026 the IRS replaced First Time Abate with an automatic process, so for a lot of people the penalty now comes off on its own. For everyone else, this page explains exactly what to do, step by step.

Automatic relief since July 8, 2026: for a lot of people the penalty comes off with no request at all
Covers failure to file, failure to pay and failure to deposit penalties
Reasonable cause is a separate route if your three-year record is not clean
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First, check whether you need to ask for penalty relief at all

On July 8, 2026 the IRS replaced First Time Abate with an automatic process, announced in IR-2026-83. The IRS now applies penalty relief automatically to people with a clean recent record, and it covers failure to file, failure to pay and failure to deposit penalties.

In the IRS's own words: 'Taxpayers do not need to take action to receive this relief. If eligible, the IRS will apply AEP and issue a notice confirming that the relief was granted.'

It does not apply to information returns, or to returns filed only because of a one-time transaction such as an estate or gift tax return.

You likely qualify automatically if:

The penalty is on tax year 2025 or later, you filed the same type of return on time for the previous three years, and you paid what you owed in those years.

If that is you, wait for the IRS notice confirming the relief before doing anything else. You do not need to call.

If you do need to ask

How to request IRS penalty relief, step by step

If the automatic process has not covered you, this is the whole procedure. Most people can work through it without paying anyone.

1
Find the notice number and the deadline
The notice number is printed in the top right corner: CP14, CP2000, and so on. The response date is on the first page. Note it down before anything else.
2
Work out which penalty you are being charged
The notice itemizes it. Failure to file, failure to pay and failure to deposit are the three that qualify for the standard relief. Anything else follows a different path.
3
Call the number on your notice
It is a toll-free number printed on the letter itself. Say that you would like penalty relief based on your compliance history. You do not have to name the program or send documents, because the IRS checks your record while you are on the line.
4
Or put it in writing
If you would rather not call, or the call does not resolve it, send a written request or file Form 843 to the address in that form's instructions. The link to Form 843 is in the official sources at the bottom of this page.
5
Keep a record of the call
Date, time, the name and badge number of the person you spoke to, and what they told you. If it has to be chased later, that note is the most useful thing you will have.

Before you call

What to have on hand before you call the IRS about a penalty

Have these in front of you before you dial. The call goes faster when you can answer straight away.

The notice itself, with the notice number in the top right corner
The tax year the penalty relates to
Your Social Security number or EIN
A rough idea of your filing history for the last three years

If you already paid it

Paying the penalty does not stop you asking for it back

A lot of people pay a penalty simply to make the letter go away, without ever asking whether it should have been charged. If you would have qualified for relief at the time, you can claim it back using Form 843.

There is a time limit on refund claims

Once a year closes it does not reopen. If this applies to you, it is worth doing sooner rather than later.

If your record is not clean

Reasonable cause is a separate route to penalty relief

Miss the three-year test and the automatic relief closes, but you can still ask the IRS to remove a penalty for reasonable cause. This one you do have to argue, and it works best when you are specific. The circumstances the IRS lists as possible reasonable cause are these.

Fires, natural disasters or civil disturbances
Death, serious illness or unavoidable absence of you or an immediate family member
Difficulty obtaining the records you needed
System issues that delayed a timely electronic filing or payment

What generally does not count as reasonable cause

The IRS says the following are usually not enough on their own. Knowing this before you write saves a lot of wasted effort.

Relying on a tax professional
Not knowing about the deadline
Making a mistake
Not having the money to pay

How to write the request

Write plainly, give dates, explain what stopped you meeting the deadline and what you did once you could, and attach evidence such as hospital records or a death certificate.

If you get stuck

Free help with an IRS penalty that is genuinely free

If the normal channels are not working, or you cannot afford to pay anyone, these are the two places to go. Neither charges you.

Taxpayer Advocate Service

An independent organization inside the IRS. They step in when the ordinary process has broken down or a delay is causing you real hardship.

Their website is taxpayeradvocate.irs.gov, linked in the official sources below.

Low Income Taxpayer Clinics

Free or low-cost representation in disputes with the IRS, with help available in several languages.

For 2026 the income limit is 250% of the federal poverty guidelines, roughly $39,900 for one person or $82,500 for a family of four in most states.

The clinic finder is linked in the official sources below.

Read it yourself

Official IRS sources on penalty relief

Everything above comes from the IRS. Nothing here is a substitute for reading it directly.

IRS: Administrative penalty relief (updated July 14, 2026)
IR-2026-83: IRS simplifies penalty relief, introduces automatic process (July 8, 2026)
IRS: Penalty relief for reasonable cause
About Form 843 claim for refund and request for abatement
Taxpayer Advocate: A long-awaited taxpayer win
Taxpayer Advocate Service free, independent help inside the IRS
Find a Low Income Taxpayer Clinic near you

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Nothing on this page asks you to contact anyone, but if you do work with us later on a return or a filing, the whole engagement runs through an encrypted client portal with video or phone consultations and electronic signatures, so you never need to visit an office unless you want to.

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Questions people actually ask

Straight answers

Do I have to apply for the automatic IRS penalty relief introduced in July 2026?
No. In the IRS's own words, taxpayers do not need to take action to receive this relief, and if you are eligible the IRS will apply it and issue a notice confirming that the relief was granted. It covers failure to file, failure to pay and failure to deposit penalties where the penalty is on tax year 2025 or later, you filed the same type of return on time for the previous three years, and you paid what you owed in those years. If that describes you, wait for the notice rather than calling.
Does the interest come off too when an IRS penalty is removed?
Interest charged on a penalty that is later removed is generally adjusted along with it. Interest on the underlying tax you owed is a separate matter and is not usually removed. Your notice itemizes what is being charged, which is the place to start when working out what would actually come off.
I cannot pay the tax itself. Can I still ask about the penalty?
Yes. Removing a penalty and arranging to pay the tax are two different conversations, and you can raise both in the same call. The toll-free number to call is printed on the notice itself, so you do not need to hunt for it.
Do I need to name the relief program when I call the IRS?
No. The IRS states you do not need to specify the relief you are seeking or provide supporting documents for the standard compliance-history relief. Say that you would like penalty relief based on your compliance history, and the IRS checks your record while you are on the line.
How long does IRS penalty relief take?
A phone request can sometimes be resolved on the call itself. Written requests take considerably longer, so send them well before any deadline on your notice and keep a copy of what you sent. Note the date, time, and the name and badge number of anyone you speak to, because that record is the most useful thing you will have if it has to be chased later.
I already paid the penalty. Is it too late to get it back?
Not necessarily. If you would have qualified for relief at the time, you can claim it back using Form 843, which is the claim for refund and request for abatement. There is a time limit on refund claims and once a year closes it does not reopen, so it is worth doing sooner rather than later.

Related services

Where this connects to the rest of the practice

Audit and IRS Notice Help
Where an IRS letter goes beyond a penalty question and turns into an examination, this is the support we do provide.
IRS CP2000 Notice Help
A CP2000 proposes a change to your return based on third-party data, and this page walks through checking the figures and answering it on time.
Tax FAQs
Short answers to the questions people ask most often about filing, deadlines, IRS letters, and what working with us involves.

Read the IRS pages yourself, and use the free help if you need it

Everything on this page comes from the IRS, and the official sources above are the ones to read before you act. If the ordinary channels are not working, the Taxpayer Advocate Service and the Low Income Taxpayer Clinics will help you at no charge. We do not provide IRS penalty representation, so there is nothing here to buy.

Call (646) 295-3811

This page is general information about IRS penalty relief, current at July 30, 2026, and is not advice about your situation. Reading it does not create a client relationship. Dynamic Tax & Accounting does not provide IRS penalty representation services; where representation is needed, the Taxpayer Advocate Service and Low Income Taxpayer Clinics listed above are the places to start.

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