IRS Implements New Automatic Tax Penalty Relief Program

The Internal Revenue Service has announced a new Automatic Exemption from Penalty (AEP) process. This system will automatically grant penalty relief to taxpayers with a consistent record of timely filing and payment. Replacing the previous First Time Abate relief, the program is set to begin in summer 2026 for eligible original returns from tax year 2025 and 2026 quarterly returns.