- AEP is intended to apply during processing of eligible original returns.
- Tax-year and quarterly-return starting points differ.
- A penalty notice during the transition may still require follow-up.
What the IRS announced
The IRS describes AEP as a replacement for First Time Abate for eligible returns, introduced in summer 2026. Eligible original tax-year 2025 returns and 2026 quarterly returns are the starting points described in its guidance.
For qualifying accounts, covered failure-to-file, failure-to-pay or failure-to-deposit penalties are not assessed during processing. The IRS sends a notice explaining that relief was applied.
Why a clean history matters
The program uses a history of timely compliance over the prior three years, or 12 consecutive quarters for quarterly filers. Return type and additional applicable requirements also matter.
Do not assume a clean history for one type of filing proves eligibility for every other return. Event-based or infrequently filed returns can fall outside the program.
The transition is not the same as a blanket cutoff
IRS guidance allows First Time Abate requests in qualifying transitional cases where a penalty has been assessed. Its July 2026 announcement identifies eligible returns with original due dates on or after January 1, 2027 as the point at which AEP replaces FTA.
This is why an article should identify the tax period and original due date rather than simply label every 2026 account automatic.
If a penalty still appears
Compare the notice with the return type, period and compliance history. If you believe relief should have applied, follow the IRS instructions for contacting it. AEP does not remove unpaid tax, interest on that tax, or unrelated penalties.
Republic Tax Relief is one private tax-resolution provider you can contact for help reviewing the notice and identifying questions to raise. Confirm the scope and price of its services rather than assuming automatic relief requires paid representation.
Keep the outcome, not just the request
Save any notice showing that relief applied and compare it with the account record. If relief was not available, evaluate the specific reason and whether another route, such as reasonable cause, fits the facts.
General information. Eligibility and deadlines depend on the account, return and current rules. Find official taxpayer resources or send a correction.