Illustration of IRS automatic penalty relief — an envelope stamped RELIEF GRANTED with a stopwatch on a clean desk
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IRS Automatic Penalty Relief: AEP Replaces First Time Abate

BySW Accounting admin

Do I have to ask the IRS for penalty relief anymore? Not for the most common relief. Starting summer 2026, the IRS is replacing First Time Abate with automatic penalty relief — the new Automatic Exemption from Penalty (AEP) will waive failure-to-file, failure-to-pay, and failure-to-deposit penalties for eligible taxpayers during return processing, with no request…