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The IRS Is Changing How Penalty Relief Works. Here's What Taxpayers Need to Know

global Tax

The IRS Is Changing How Penalty Relief Works. Here's What Taxpayers Need to Know

The IRS is replacing its long-standing First-Time Abatement process with a new Automatic Exemption from Penalty (AEP) system beginning with 2025 tax returns. Learn how the new process could simplify penalty relief and what it means for individuals and businesses.

By Mitchell Halpern, JD September 03, 2026