Automatic Exemption From Penalty: What Tax Preparers Need to Know - 0.2 CPE

The IRS is introducing a more automated approach to penalty relief for taxpayers with a strong compliance history. Tax professionals must understand when the new system applies, when manual action is still required, and how it differs from reasonable-cause relief.

Learning Objective

Identify when a taxpayer may qualify for automatic penalty relief under the IRS's Automatic Exemption From Penalty (AEP) program.

Course Description

This nano-learning course reviews the IRS's Automatic Exemption From Penalty (AEP) program, including eligibility requirements, implementation, and its impact on penalty relief procedures.

Recommended Audience

Tax and accounting professionals who prepare returns, respond to IRS penalty notices, manage payroll tax compliance, or assist clients with requests for penalty relief.

Key Considerations

The AEP program may automatically provide relief from certain failure-to-file, failure-to-pay, and failure-to-deposit penalties when a taxpayer has the required compliance history. However, practitioners must continue verifying client records, monitoring the implementation period, and pursuing manual or reasonable-cause relief when automatic relief does not apply.

Author / Instructor

Lee T. Reams, Sr., BSME EA
Lee T. Reams, Sr. is an Enrolled Agent with extensive experience in tax preparation, representation, and advanced tax planning. He is known for helping practitioners apply complex tax rules in real-world client situations.

Course Details

This course qualifies for NASBA continuing professional education credit. CountingWorks, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org. 

Prepare for the New Penalty-Relief Process

Start Automatic Exemption From Penalty: What Tax Preparers Need to Know and learn how taxpayer compliance history, penalty type, and return eligibility affect automatic relief under the AEP program