Monthly CPA Newsletter : July 2026

June 2026 D Tax Accounting | CPA & Advisor Newsletter

What CPAs Should Know

The IRS has expanded its use of automatic penalty relief, allowing certain eligible taxpayers to receive relief without submitting a separate request. While eligibility is limited, this initiative can reduce administrative work for both taxpayers and tax professionals.

For CPAs

For CPAs, this presents an opportunity to proactively review client accounts and identify situations where penalties may have already been removed or where additional relief options remain available.

Key Takeaways

  • Certain eligible penalties may now be removed automatically by the IRS.

  • Taxpayers do not need to file a separate request when they qualify under the automatic relief program.

  • Eligibility depends on filing compliance and the specific type of penalty involved.

Manage Client Expectations

While the term "automatic relief" sounds broad, it does not apply to every taxpayer or every penalty. CPAs should remind clients that filing compliance remains essential and that some penalties may still require a formal request for abatement or another resolution strategy.

Stay Ahead of Future IRS Updates

The IRS continues to modernize its taxpayer service and compliance processes, with increased automation becoming a recurring theme. Staying informed about these procedural changes allows CPAs to identify planning opportunities, provide proactive advice, and deliver additional value beyond tax preparation.

Why It Matters

Automatic relief can reduce a client's overall tax liability and simplify the resolution process. However, not all penalties qualify, making it important to review IRS account transcripts rather than assuming all penalties have been removed.

Clients with outstanding balances may still benefit from additional resolution strategies, including Installment Agreements, Offer in Compromise, or Penalty Abatement where appropriate.

Review Existing Client Files

Now is an excellent time to revisit clients with prior IRS penalties, unresolved balances, or recently filed delinquent returns. A quick review of their IRS transcripts may reveal that automatic relief has already been applied or highlight opportunities for additional relief that should be pursued.

A Good Time for a Client Check-In

This IRS update provides a practical reason to reconnect with clients who may have ignored prior IRS notices or assumed their options were limited. A simple account review could uncover meaningful savings while helping clients return to good standing with the IRS.

Final Note

At D Tax Accounting and D Tax Settled, we continue to monitor IRS developments and help individuals, businesses, and fellow tax professionals navigate changes in tax administration with practical, compliant solutions.