Doctors who pay a tax penalty often assume there is nothing they can do about it. Fortunately, the IRS has historically offered a relatively generous administrative waiver called First Time Abatement (FTA).

Beginning in 2026, the IRS is transitioning FTA to a new system called the Automatic Exemption from Penalty (AEP). The underlying lesson is the same: if you have a good compliance history, one mistake may not have to cost you thousands of dollars.

So if you’ve ever wondered, “Why does my tax professional charge so much?” or “Why did my fee go up this year?” this post is for you.

The short answer is this: complexity takes time, and during tax season, time is the scarcest resource in the building.

The good news? There are practical ways to make your return easier, cleaner, and sometimes less expensive to prepare.

Every January, business owners across the country are reminded that with great power (1099 income) comes great responsibility (issuing 1099s to others).

If you pay contractors for services, the IRS expects you to report those payments — and they’ve built several traps that catch people who don’t understand the rules.