The IRS is changing how it forgives penalties. Starting summer 2026, if you qualify for relief, you'll get it automatically — no request needed IRS.

Right now, the process is backward. If you're hit with a penalty, you have to recognize it, figure out if you qualify for forgiveness, and then call the IRS or write them a letter asking for relief. It's like being told you may owe money, then having to do the work to prove you shouldn't. Most people with a tax professional helping them can do this. People handling their taxes alone often just pay the penalty.

The IRS is fixing this. Under the new system, called Automatic Exemption from Penalty (AEP), their computers will check whether you deserve relief and apply it by themselves. If you meet the rules — no penalties in the past three years, filed on time, paid on time — the IRS will erase the penalty without you asking National Taxpayer Advocate.

What qualifies doesn't change. The rules for who gets help remain the same. This is just about making it automatic instead of you having to chase it down.

There's still uncertainty about how it will actually work. The IRS hasn't published the exact date, just "summer 2026." They haven't said whether this will cover old penalties sitting in their system or only new ones going forward. If you're in the middle of asking for penalty relief right now, keep following the old process — don't assume you'll be automatically covered.

One real issue: the IRS's filing and payment records are old and sometimes messy. When the IRS has tried automating relief in other situations, their data systems sometimes miss people who actually qualify. You should expect that even after 2026, some taxpayers will still need to make the request the old way if the automatic system gets their case wrong.

Nothing is locked in yet. No final rules, no solid date. If you're a tax professional preparing for 2026, stay flexible. Watch for official IRS announcements before you change how you handle penalty requests.