San Mateo, CA
Good News: The IRS Has a New Way to Help with Tax Penalties
If you've ever made a mistake on your taxes—paid a little late or filed a few months behind—you might have worried about facing a penalty.
The IRS just made things easier for responsible taxpayers like you.
What's the New Automatic Penalty Relief Program?
The IRS just introduced something called Automatic Exemption from Penalty (AEP). Think of it as the IRS giving you a "do-over" for honest mistakes if you've been a responsible taxpayer most of the time. This automatic tax penalty relief replaces the old First Time Abate program and eliminates the need to call the IRS and request help.
Who Qualifies for Automatic Penalty Relief?
You qualify for this IRS penalty forgiveness program if you've been filing on time and paying any taxes you owe on time for the past three years. If you've maintained this good track record, the IRS will automatically waive penalties for:
- Failure to file (late filing)
- Failure to pay (late payment)
- Failure to deposit
The Important Part: The 3-Year Rule Matters
Here's something crucial to understand: this tax penalty waiver is designed for people who make an occasional mistake, not for people who are habitually late with filing or paying. To keep qualifying for automatic penalty relief year after year, you need to maintain your good filing and payment habits. If you slip up and become a regular late-filer or late-payer, you won't automatically receive this relief the next time—you'll need to rebuild that three-year clean record.
You Don't Need to Do Anything
The best part? You don't have to call the IRS or fill out special forms for automatic tax penalty relief.
If you qualify, the IRS will automatically apply the relief when they process your return and send you a notice letting you know the penalty was waived.
Next Steps
Contact your tax professional if you have questions about whether you qualify for the Automatic Exemption from Penalty program. They can review your filing history and help ensure you take advantage of this automatic penalty forgiveness.
650.933.5222
Disclaimer: The information provided is intended to provide a general overview of the topic presented. It is not intended to be a legal interpretation of your individual tax or legal situation. If there is a conflict between the information provided and any legal authority implementing or interpreting the topic, the legal authority shall prevail. Always seek legal advice from a licensed attorney. This article does not in any way establish an attorney-client relationship. That relationship can only be accomplished with both parties signing a mutual, written agreement.
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