# The IRS Just Made First-Time Penalty Abatement Automatic

Page: https://stenobird.com/podcast/federal-tax-updates-5954475/the-irs-just-made-first-time-penalty-abatement-automatic
Text version: https://stenobird.com/podcast/federal-tax-updates-5954475/the-irs-just-made-first-time-penalty-abatement-automatic.md
Podcast: [Federal Tax Updates](https://stenobird.com/podcast/federal-tax-updates-5954475)
Published: 2026-08-10T14:00:00+00:00
Episode link: https://share.transistor.fm/s/7541cc51
Audio file: https://op3.dev/e/media.transistor.fm/7541cc51/cb66178e.mp3
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JSON: https://stenobird.com/v1/public/podcasts/federal-tax-updates-5954475/episodes/the-irs-just-made-first-time-penalty-abatement-automatic
Duration seconds: 3299

## Resource

Roger and Annie take a midyear look at how the IRS is holding up: call center struggles, a wave of CP2000, CP05, and CP14 notices, and the sudden departure of top Treasury tax official Ken Kies. They break down the new automatic penalty abatement replacing the old first-time abatement process, updates to Trump accounts, and a long list of OBBBA provisions kicking in for 2026, from the educator expense deduction to a higher 1099-K threshold. They close with practical tips for managing the fall extension crunch and a prediction on whether the TAS Act clears its Senate Finance Committee markup. Sponsors Padgett - Contact Padgett or Email Jeff Phillips Get NASBA Approved CPE or IRS Approved CE Launch the course on EarmarkCPE to get free CPE/CE for listening to this episode. Links mentioned in this episode Chapters (00:00) - Welcome and Catch Up (00:31) - Summer Tax Conference Circuit (04:06) - Why IRS Phones Struggle (06:22) - Digital Self Service Push (08:44) - Staffing Tech and Leadership Shift (12:34) - Tips and Overtime Reporting 2026 (14:39) - Refund Notices and Paper Checks (16:53) - Most Common IRS Notices (21:05) - Trump Accounts Guidance Update (24:03) - Kwong Case Status and Deadlines (27:00) - Fall Extension Survival (28:43) - Client Info Deadlines (31:13) - Systems and Automation (33:07) - Midyear Client Touchpoints (34:00) - Advisory in AI Era (35:21) - Automatic Penalty Relief (38:00) - AEP Tradeoffs Explained (42:36) - Key Changes for 2026 (45:59) - Business and Reporting Updates (48:50) - TAS Act Outlook (53:43) - Conference Plans and Farewell Follow the Federal Tax Updates Podcast on Social Media twitter.com/FedTaxPod facebook.com/FedTaxPod linkedin.com/showcase/fedtaxpod Connect with the Hosts on LinkedIn Roger Harris Annie Schwab Review Leave a review on…

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