The IRS has announced that starting this summer, eligible taxpayers will have certain penalties automatically waived.
The new program, Automatic Exemption from Penalty (AEP), replaces the first time abate process which typically requires taxpayers to request relief.
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AEP will apply to original returns beginning with 2025 and 2026 quarterly returns, as well as future tax periods.
“Automatic Exemption from Penalty reflects the IRS’ commitment to making the payment of taxes owed simpler and more consistent,” said IRS Chief Executive Officer Frank J. Bisignano. “By automatically applying penalty relief, the IRS recognizes that taxpayers who historically pay on time should not have to make a formal request for relief that is routinely granted.”
You will qualify if you have a history of timely filing the return and paying any tax due in the three prior years.
Penalties will not be assessed during the process for
- failure to file
- failure to pay
- failure to deposit
You do not have to take action to receive relief as the IRS will apply it automatically.
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It's important to not that not all returns are eligible for this relief. Information returns and returns that are filed only in response to specific transactions or infrequent events are not eligible.
The official deadline to file your 2026 federal income tax returns in 2027 is April 15, 2027.
