USTaxPenaltySaverCP95
InformationalAutomatic Penalty Relief Applied
The IRS removed an eligible failure-to-file or failure-to-pay penalty automatically (AEP).
Last reviewed: November 10, 2026. Check irs.gov for changes.
What This Notice Means
The IRS sends CP95 to individuals when it applies the Automatic Exemption from Penalty (AEP) announced in IR-2026-83 (July 8, 2026). Your account transcript shows an unreversed TC 971 AC 996. AEP covers failure-to-file and failure-to-pay penalties for taxpayers with a clean 3-year history. Tax, interest and any other penalties are still due. CP95(SP) is the Spanish version.
Why You May Have Received This
- 1Return filed or tax paid late, with no penalties in the prior 3 years
- 2Tax year 2025 or later return that qualified for automatic relief
Required Actions
Keep this notice with your tax records
Pay any tax, interest or other penalties still due, or set up a payment plan
You do not need to ask for First-Time Abatement for the penalty that was removed
Your Options
Use these calculators to understand your situation and explore resolution options.
Consequences If Ignored
- Unpaid tax and interest keep growing until paid
Tips & Best Practices
- Automatic relief or FTA in the last 3 years blocks automatic relief for the next 3 years
- If a later notice still shows the penalty, check the transcript for a TC 972 reversal and call the number on the notice
Related Resources
IRS Resources
Legal References
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