Home › Guides › First-time penalty relief
IRS first-time penalty relief: who qualifies and how to ask
If you've filed and paid on time for the three years before, the IRS will usually remove a late-filing or late-payment penalty if you ask. From summer 2026 it's becoming automatic for 2025 returns onward.
Checked 2026-09-27 · All guides
What's changing in 2026
The IRS is replacing first-time relief ("First Time Abate") with Automatic Exemption from Penalty (AEP), starting summer 2026. For 2025 tax-year returns and later, if you file or pay late but have a clean record for the three years before, the failure-to-file and failure-to-pay penalties aren't charged at all, and you get a letter saying so. You don't need to do anything.
For 2024 and earlier years, you still have to ask. That's what the script below is for.
Who qualifies
From the IRS's conditions:
- You filed the same type of return on time for the three prior years.
- No penalty was charged in those three years (the estimated-tax penalty doesn't count), or any penalty that was charged was later removed for reasonable cause or IRS error.
It covers the failure-to-file, failure-to-pay and failure-to-deposit penalties, whatever the amount. It doesn't remove the tax itself, and you still owe any unpaid tax and interest on it. But when a penalty is removed, the IRS automatically removes the interest charged on that penalty.
How to ask
Call the toll-free number in the top right corner of your notice, or send a written statement or Form 843. You don't need to name "first-time abate" or send documents; the IRS checks your record.
A worked example
Maria filed her 2024 return on time but paid the $2,000 balance three months late. The failure-to-pay penalty is 0.5% of the unpaid tax for each month or part of a month: $2,000 × 0.5% × 3 = $30, plus interest on it. She filed and paid on time for 2021, 2022 and 2023 with no penalties, so she calls the number on her notice and asks. If it's removed, the interest on the $30 comes off too. She still owes the interest on the late tax itself.
If you don't qualify
You can ask for relief for reasonable cause: for example serious illness, a death in the family, a fire or disaster, or being unable to get your records. Explain what happened, when, and how it stopped you filing or paying on time. The IRS will tell you its decision.
Questions people ask
Can you use first-time relief more than once?
Not often. The three prior years must be free of penalties, except ones removed for reasonable cause or IRS error. A penalty removed under first-time relief isn't on that list, so it still counts against your record for the next three years.
Does it cover the accuracy-related penalty or the estimated-tax penalty?
No. The IRS lists only failure to file, failure to pay and failure to deposit.
Where can I get free help?
Low Income Taxpayer Clinics and the Taxpayer Advocate Service (an independent office within the IRS) help for free. IRS Volunteer Income Tax Assistance (VITA) sites help with filing.
Related
Sources
- IRS: Administrative penalty relief (First Time Abate and Automatic Exemption from Penalty)
- IRS: Failure to pay penalty
Sources checked 2026-09-27.
General information, not tax advice. Rules and figures change; each figure shows where it comes from and when we checked it. Free help: IRS Volunteer Income Tax Assistance (VITA) and Low Income Taxpayer Clinics.