What This Notice Means
CP95 is good news. You filed your return late, paid your tax late, or both. Normally that brings failure-to-file and failure-to-pay penalties. This time the IRS did not assess them.
The reason is the Automatic Exemption from Penalty, called AEP. It replaces First Time Abate. If you have a history of filing and paying on time for the three prior years, the IRS skips these penalties when it processes your original return. You don't have to ask for it. CP95 is the notice that tells you it happened. CP95(SP) is the Spanish version.
What It Does Not Cover
- Tax. You still owe any unpaid tax.
- Interest. Interest keeps running on any unpaid balance until it is paid in full.
- Other penalties. AEP only covers failure to file, failure to pay, and failure to deposit. Accuracy-related penalties and other penalties can still apply.
If you still owe on that return, you'll get a separate balance due notice. That notice should not include the penalties AEP removed.
What to Do
- No response is needed.
- Pay any balance shown on your separate notice. Paying sooner stops more interest.
- Keep this notice. Your online account transcript will also show the relief was granted.
You Can't Use It Again Right Away
Once AEP is applied, it resets your history. You need three more consecutive years of filing and paying on time before the relief can apply again. Treat this as your one pass and get back on schedule.
If You Got a Penalty Instead
AEP began in summer 2026 with 2025 tax year returns, so some eligible returns processed early in the transition did not get it. If you received a penalty notice and believe you have a clean three-year history, call the number on your notice and ask for First Time Abate. If you don't qualify, you can still request relief for reasonable cause.
If you have a balance left after your CP95 notice or other penalties on your account, call us at (813) 229-7100.