Is Penance Necessary?

As with all topics that potentially divide certain denominations, specifically in this case, catholics and protestants, one must prayerfully consider how God is working in their own lives. While I believe words have meaning and practices should always honor God, there are right answers, whether God has given it to us to understand or not.

According to this link; here is the official definition based on the Catholic faith and tradition.
http://www.newadvent.org/cathen/11618c.htm

Penance is a sacrament of the New Law instituted by Christ in which forgiveness of sins committed after baptism is granted through the priest's absolution to those who with true sorrow confess their sins and promise to satisfy for the same. It is called a "sacrament" not simply a function or ceremony, because it is an outward sign instituted by Christ to impart grace to the soul. As an outward sign it comprises the actions of the penitent in presenting himself to the priest and accusing himself of his sins, and the actions of the priest in pronouncing absolution and imposing satisfaction. This whole procedure is usually called, from one of its parts, "confession", and it is said to take place in the "tribunal ofpenance", because it is a judicial process in which the penitent is at once the accuser, the person accused, and the witness, while the priest pronounces judgment and sentence. The grace conferred is deliverance from the guilt of sin and, in the case of mortal sin, from its eternal punishment; hence also reconciliation with God, justification. Finally, the confession is made not in the secrecy of the penitent's heart nor to a layman as friend and advocate, nor to a representative of human authority, but to a duly ordained priest with requisite jurisdiction and with the "power of the keys", i.e., the power to forgive sins which Christ granted to His Church.

Protestants typically believe that you are justified by faith and not by works.

Paul tells us this in Romans 5:1 - I find it interesting that in his letter to the Romans, where the Catholic faith originated, he is teaching this specific principle.

1Therefore, since we have been justified through faith, we^[a]have peace with God through our Lord Jesus Christ, 2through whom we have gained access by faith into this grace in which we now stand. And we^[b] rejoice in the hope of the glory of God. 3Not only so, but we^[c] also rejoice in our sufferings, because we know that suffering produces perseverance; 4perseverance, character; and character, hope. 5And hope does not disappoint us, because God has poured out his love into our hearts by the Holy Spirit, whom he has given us

Question: "How can salvation be not of works when faith is required? Isn't believing a work?"

Answer: Our salvation depends solely upon Jesus Christ. He is our substitute, taking sin’s penalty (2 Corinthians 5:21); He is our Savior from sin (John 1:29); He is the author and finisher of our faith (Hebrews 12:2). The work necessary to provide salvation was fully accomplished by Jesus Himself, who lived a perfect life, took God’s judgment for sin, and rose again from the dead (Hebrews 10:12).

The Bible is quite clear that our own works do not help merit salvation. “Not by works of righteousness which we have done” (Titus 3:5). “Not of works” (Ephesians 2:9). “There is none righteous, no not one” (Romans 3:10). This means that offering sacrifices, keeping the commandments, going to church, being baptized, and other good deeds are incapable of saving anyone. No matter how “good” we are, we can never measure up to God’s standard of holiness (Romans 3:23; Matthew 19:17; Isaiah 64:6). http://www.gotquestions.org/faith-work.html

So while I believe that I don't need to confess my sins to a priest, it's not necessarily wrong for someone else to. However, it is given to God only to forgive sins. Since sin is defined as being separate from God, only God can repair or forgive trespass against himself. Think of it this way;
can I forgive you for something you did to my father? No, ofcourse not. And even if my father bestowed on me the right to say the words, he cannot accept apology from anyone but the transgressor. This changed for believers when Christ came to the earth. He became for all who would be saved, the intermediary. His blood covers, not removes, our sins. We are not fully glorified until we reach heaven.

Again, don't be misled. The traditions of men do not seperate them from God. But, it is through the traditions of men that seperation can occur, when a man takes up his tradition over a relationship with Christ. This is demonstrated all throughout the Bible, especially in the Gospels by the Pharisees.