Senate Funding Deal Moves Forward as IRS Rolls Out Automatic Tax-Penalty Relief
Senate leaders reached a funding agreement intended to prevent a federal shutdown, while the IRS began moving eligible taxpayers toward automatic penalty relief.
Senate leaders reached a funding agreement intended to prevent a federal shutdown, while the IRS began moving eligible taxpayers toward automatic penalty relief.
The IRS says a new automatic process will begin phasing in during summer 2026 for eligible taxpayers with three years of timely filing and payment history.
The IRS is replacing request-based First Time Abate with automatic penalty relief, but taxpayers with transition-period returns may still need to ask.
The IRS is rolling out automatic penalty relief for taxpayers with strong compliance histories, but unpaid tax, interest and noncovered penalties still remain due.
The IRS says Automatic Exemption from Penalty (AEP) will replace parts of First Time Abate starting summer 2026—here’s who gets automatic relief.
AEP replaces First Time Abate for eligible late filers: the IRS will skip some failure-to-file/pay/deposit penalties starting Summer 2026.