Sometimes, you make a mistake on your taxes. The IRS might charge penalties. You can request the IRS to remove or reduce these penalties. This is called penalty abatement. You do this by writing a letter.
Writing this letter can be tricky. Don’t worry. We are here to help. We will share sample letters. These are examples you can use.
Our samples cover different situations. You will find the right one for you. Use them to write your own letter.
Sample Letter To Irs Requesting Abatement Of Penalties
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Your Phone Number]
[Your Email Address]
[Date]
Internal Revenue Service
[IRS Address]
[IRS City, State, Zip Code]
**Subject: Request for Penalty Abatement**
**Tax Year: [Year]**
**Taxpayer Identification Number (TIN): [Your TIN]**
Dear Sir/Madam,
I am writing to request an abatement of penalties assessed for the tax year [Year]. I received a notice regarding these penalties on [Date of Notice].
The penalties are due to [Briefly explain why you failed to file or pay on time. Be specific and honest. Examples: a serious illness, a death in the family, a natural disaster, reliance on incorrect advice].
[Provide supporting documentation. Examples: Doctor’s note, death certificate, insurance claim, etc.]
I believe my failure to comply with tax requirements was due to reasonable cause and not willful neglect. I have since [Explain what you have done to correct the issue. Examples: filed the return, paid the tax due, set up a payment plan].
I respectfully request that the IRS consider my circumstances and grant an abatement of the penalties assessed for the tax year [Year].
Thank you for your time and consideration.
Sincerely,
[Your Signature]
[Your Typed Name]
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How to Write Letter To IRS Requesting Abatement Of Penalties
Crafting a Compelling Subject Line
Your subject line is the initial handshake with the IRS; make it count. Clarity is paramount; avoid ambiguity. A straightforward subject line facilitates swift processing. Consider these examples:
- Subject: Request for Penalty Abatement – [Taxpayer Name] – [Tax Year] – [Tax ID]
- Subject: Penalty Abatement Request – Account Number [Account Number]
Incorporate critical identifiers to preempt any bureaucratic hiccups.
Adopting a Respectful Salutation
Address the IRS with civility; it cultivates a receptive environment. Avoid colloquialisms; maintain a professional tone. Generic yet appropriate salutations include:
- Dear Internal Revenue Service,
- To Whom It May Concern,
Articulating the Rationale for Abatement
This section is the linchpin of your appeal. Diligently delineate the exigencies that precipitated the penalty. Common grounds for abatement include:
- Reasonable Cause: Document unforeseen circumstances – illness, natural disaster, death of a loved one – that impeded timely compliance. Corroborating evidence, such as medical records or obituaries, bolsters your claim.
- Reliance on Erroneous Advice: If you acted upon flawed counsel from the IRS or a tax professional, furnish details and supporting documentation.
- First-Time Penalty Abatement: The IRS may grant leniency to taxpayers with a hitherto unblemished compliance record. Explicitly request consideration under this provision.
Be precise; vagueness diminishes your credibility. Quantify the impact of the extenuating circumstances.
Providing Pertinent Taxpayer Information
Include the following details; omission can engender processing delays:
- Full Legal Name
- Tax Identification Number (Social Security Number or Employer Identification Number)
- Tax Year in Question
- The Specific Penalty You’re Appealing
- Contact Phone Number
- Current Mailing Address
Redundancy is preferable to omission; ensure accuracy.
Substantiating Your Claim with Documentation
A well-supported request is more likely to garner a favorable outcome. Assemble all relevant documentation to corroborate your assertions. Examples include:
- Medical Records
- Legal Documents
- Insurance Claims
- Correspondence with the IRS
- Affidavits from Third Parties
Label each document clearly; provide a concise summary of its relevance.
Proposing a Remedial Action (If Applicable)
If the penalty stemmed from an underpayment, outline your plan for rectifying the discrepancy. This demonstrates a commitment to fiscal rectitude.
- Detail your payment schedule.
- Indicate the amount you intend to pay.
- Reference any previous payments made.
Promptness mitigates further accrual of interest and penalties.
Concluding with Professionalism and Gratitude
End your letter with a polite closing; it leaves a positive final impression. Express gratitude for their consideration.
- Sincerely,
- Respectfully,
Include your typed name and signature. Provide a return address. Retain a copy of the letter and all enclosures for your records. Mailing via certified mail provides proof of delivery.
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Frequently Asked Questions: IRS Penalty Abatement Request Letters
Navigating IRS penalties can be complex. These FAQs provide clarity on crafting effective penalty abatement request letters, assisting you in understanding the process and improving your chances of a successful outcome.
What is a penalty abatement, and when can I request it?
A penalty abatement is a request to have penalties waived or reduced by the IRS. You can request it if you have reasonable cause for failing to meet your tax obligations, such as filing or paying on time.
What constitutes “reasonable cause” for penalty abatement?
Reasonable cause is based on facts and circumstances. It generally requires demonstrating that you exercised ordinary business care and prudence but were still unable to comply with the tax law. Examples include serious illness, death in the family, or unforeseen circumstances.
What information should I include in my penalty abatement request letter?
Your letter should include your name, Social Security Number (SSN) or Employer Identification Number (EIN), the tax year in question, the specific penalty you’re seeking to abate, a detailed explanation of the reasonable cause, and any supporting documentation.
Where do I send my penalty abatement request letter?
Send the letter to the address provided on the IRS notice you received. If you don’t have the notice, you can find the appropriate address on the IRS website or by calling the IRS directly.
How long does it take for the IRS to process a penalty abatement request?
Processing times vary depending on the complexity of the case and the IRS’s workload. It can take several weeks to several months to receive a response. You can check the status of your request by calling the IRS.