Automatic Penalty Relief for Eligible Taxpayers
On July 8, 2026, the IRS announced an automatic penalty relief program for taxpayers with strong filing and payment records. If you’ve consistently filed on time and paid owed taxes, you may no longer need to request relief manually. (irs.gov)
Who Qualifies?
- Individuals, trusts, estates, and entities with a consistent history of timely filing and no significant past penalties.
- Relief may apply across different tax classes, but each case is evaluated under existing IRS criteria for abatement or administrative relief.
How It Works
- relief is automatic, not requiring written request—IRS reviews taxpayer history.
- Applies to penalties such as failure to file, failure to pay, and failure to deposit.
Enhanced Data Security & Identity Theft Campaign
Also from early July 2026, the IRS launched a “Protect Your Clients; Protect Yourself” campaign series. Over five weeks, tax professionals are guided with practical steps to protect client data, prevent impersonation, fraud, and other identity theft risks. Heavy emphasis on best practices in record-keeping, software security, and credential authentication. (irs.gov)
Compliance Tips & Best Practices
- Review your filing history: Are there any missed deadlines? Any recurring penalties? Fixing past non-compliance can help ensure eligibility.
- Strengthen security: Use encrypted communications, multi-factor authentication, and limit access to sensitive tax or client information.
- Verify tax professionals: Always ensure preparers have valid credentials and their Preparer Tax Identification Number (PTIN); never sign blank returns.
- Monitor IRS notices: Watch for letters regarding identity verification or refund holds—don't ignore these.
Takeaway: The dual focus on penalty relief and identity theft protection underscores the IRS’s intent to streamline compliance and reduce taxpayer risk. If your tax practices are clean and you’re proactive, you’re likely in a favorable position for both relief and protection.