IRS Simplifies Penalty Relief for Millions of Taxpayers

The IRS is making it easier for taxpayers to get a break on penalties. Beginning this summer, the agency will automatically waive certain penalties for taxpayers who have a strong history of filing and paying on time.

The change replaces the old system, called the First Time Abate process, which usually required taxpayers to request the relief themselves. Under the new program, called Automatic Exemption from Penalty, eligible taxpayers won't have to do anything. If they qualify, the penalty relief will happen on its own.