The IRS announced that this summer, it will transition to a new “systemic relief program” dubbed Automatic Exemption from Penalty (AEP). The program will provide automatic penalty relief to taxpayers who have a history of filing and paying on time. (IR 2026-83, 7/8/2026)
AEP will replace First Time Abate and is intended to provide a simpler and less burdensome process for taxpayers seeking penalty relief. “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,” said IRS CEO Frank Bisignano.
To dig deeper, visit the original article on the Thomson Reuters blog.