“New IRS program rewards some taxpayers for paying on time.”
A new Internal Revenue Service program is designed to reward taxpayers who have a history of paying on time.
The new Automatic Exemption Policy provides relief from fines and penalties if you have a history of filing and paying your taxes on time. It applies to eligible tax years 2025 and 2026 quarterly returns and future tax periods, the IRS said.
To qualify, you must have filed and paid your taxes on time for the past three years or 12 consecutive quarters for quarterly returns. If you are eligible, penalties from things like failure to file, failure to pay and failure to deposit will be automatically applied.
“AEP is designed to eliminate the need to contact the IRS to request relief and reduce burden for those with a timely compliance history,” the agency said in a statement.
The IRS will send a confirmation notice to eligible taxpayers.
AEP replaces a previous program, First Time Abate, that waived penalties and fees but only for first-time offenders. Some specific transactions – including Form 706, U.S. Estate Tax Return or Form 709 Gift Tax Return – are not eligible for AEP.
More Information at:
https://www.msn.com/en-us/money/personalfinance/new-irs-program-rewards-some-taxpayers-for-paying-on-time/ar-AA2anUVx?
