IRS Penalty Abatement Calculator
Enter the return period, penalty type, compliance history, and notice amount. The result separates the new 2026 AEP process from older FTA requests.
AEP replaces the request-first model
Automatic Exemption from Penalty prevents an eligible penalty from being assessed during original-return processing. It covers Forms 1040, 1065, 1120, 940, 941, 943, 944, 945, and CT-1, but not infrequently filed event returns or estimated-tax penalties.
If a notice still shows an eligible penalty during the transition, contact the IRS using the notice. When administrative relief does not fit, reasonable cause remains a separate facts-and-circumstances request. Interest tied to an abated penalty is reduced automatically.
Frequently asked questions
What replaced IRS First Time Abate?
The IRS began Automatic Exemption from Penalty in summer 2026. It applies relief during processing rather than assessing the penalty and waiting for a request.
Which penalties qualify for AEP or FTA?
Failure to file, failure to pay, and failure to deposit are the main eligible penalties. Estimated-tax penalties and many event or information returns are excluded.
Do I use Form 843 for penalty abatement?
Some requests are approved by phone using the notice number. If relief cannot be approved by phone, the IRS says you may request it in writing with Form 843.
Sources
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