The IRS has announced a new Automatic Exemption from Penalty (AEP) process that will replace the long-standing First Time Abate administrative relief for eligible returns. AEP is designed to automatically provide penalty relief to taxpayers with a history of filing and paying on time, reducing the need for eligible taxpayers to contact the IRS or submit a formal request.
AEP is expected to begin in summer 2026 and applies to eligible original returns beginning with tax year 2025, 2026 quarterly