Leatherneck BookkeepingIRS Penalty Relief, Explained
IRS penalties can add a lot to what you owe. Depending on your history and what happened, some penalties may be removed.
Kinds of penalty relief
- First-time relief. For people with a good history of filing and paying on time. The IRS calls it First Time Abate.
- New in 2026: automatic relief. The IRS is replacing First Time Abate with an Automatic Exemption from Penalty, starting summer 2026 with 2025 tax year returns. If you qualify, certain late filing and late payment penalties aren’t charged at all. First Time Abate is still around for older years during the change. (Source: irs.gov)
- Reasonable cause. For people who had a real reason they couldn’t file or pay on time, like a serious illness, a death in the family or a disaster.
Penalty relief doesn’t remove the tax itself, and interest is a separate charge. The IRS decides every request.
What Kathleen does
- Reviews your IRS records (with your signed Form 8821) to see which penalties you have and why
- Tells you which kind of relief may fit your situation
- Negotiates, argues and fights for you with the IRS
Call or text (208) 614-1965
Talk with Kathleen before you talk to the IRS. Free, private consultation.
Call (208) 614-1965Text (208) 614-1965Why people call me
I’m Kathleen. I’ve spent 25+ years in taxes, since 2001. Leatherneck Bookkeeping is Marine Corps family owned and based in Nampa, Idaho, and I help people in the Treasure Valley and across the country. I named it for my late husband, Steve, a CWO5 in the U.S. Marine Corps. He taught me to never leave anyone to face a hard thing alone, and that’s how I treat every person who calls me.
Questions
Will penalty relief remove what I owe?
It can only remove penalties, not the tax itself. Interest is separate. The IRS decides, and every case is different.
What changed in 2026?
The IRS announced an Automatic Exemption from Penalty that replaces First Time Abate for newer returns, starting summer 2026. Call Kathleen to talk about which years it may apply to.
Do I need an attorney?
Most people don't need an attorney. You may need one if your case involves fraud or is headed to court.
Call or text (208) 614-1965
Talk with Kathleen before you talk to the IRS. Free, private consultation.
Call (208) 614-1965Text (208) 614-1965Leatherneck Bookkeeping is not a law firm. Results depend on your facts and IRS rules, the IRS makes the final decision, and no outcome is guaranteed.