
IRS Automatic Penalty Relief (AEP): What Taxpayers Need to Know for 2026
Automatic Penalty Relief is a new IRS initiative designed to reward taxpayers with a strong compliance history. Rather than requiring eligible taxpayers to request penalty relief after receiving a notice, the IRS intends to apply qualifying relief automatically for certain penalties. The program is expected to reduce reliance on the long-standing First Time Abate (FTA) process for many taxpayers. The















