The IRS is rolling out a new program that could save eligible taxpayers money if they make a mistake on their taxes.
The program, called Automatic Exemption from Penalty, or AEP, began this month. It replaces the old system where taxpayers had to formally request forgiveness for penalties.
Taxpayers qualify if they have filed and paid their taxes on time for the past three years. The IRS will automatically waive penalties for failing to file or pay, beginning with eligible returns for the 2025 tax year. Qualifying taxpayers will receive a notice confirming their penalty was waived…