Tax Relief with Logan Allec, CPA

IRS Penalty Abatement Explained: Here Are Your Three Options

Logan Allec

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0:00 | 12:27

IRS penalties and the interest charged on them can dramatically increase your tax debt—but there are three major ways taxpayers may qualify to have IRS penalties removed, including a new automatic penalty exemption beginning in 2026. In this video, CPA Logan Allec explains reasonable-cause relief, First Time Abatement, the new Automatic Exemption from Penalty, and what each option can and cannot eliminate.

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If you owe the IRS or your state at least $10,000—or have multiple years of unfiled tax returns—you may qualify for a free consultation with Choice Tax Relief.

In this video:


  • When the IRS may accept reasonable cause

  • Why documentation is essential

  • How IRS First Time Abatement works

  • Why “first time” does not necessarily mean once in your lifetime

  • The new Automatic Exemption from Penalty beginning in 2026

  • Which penalties may be eliminated

  • What happens to interest when penalties are removed

  • Why broader tax-relief options may reduce more than penalties alone


Official IRS information about administrative penalty relief:
https://www.irs.gov/payments/administ...

This video is for general informational purposes only and does not constitute tax or legal advice. Results depend on each taxpayer’s individual circumstances.

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