Need to ask the IRS to waive a penalty? A “First-Time Penalty Abatement” letter could be your answer. It’s for those who’ve never had penalties before. Life happens, and sometimes taxes are late.
Writing the perfect letter can be tricky. Don’t worry, we’ve got you covered. We will show you letter templates.
Ready to get those penalties waived? Keep reading for samples. Use these to craft your own winning letter.
Sample Letter To Request First-Time Penalty Abatement
## Sample Letter To Request First-Time Penalty Abatement
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Your Phone Number]
[Your Email Address]
[Date]
Internal Revenue Service
[IRS Address – Find the appropriate address on the IRS website]
**Subject: Request for First-Time Penalty Abatement – [Your Tax Year] – [Your Tax ID/SSN]**
Dear Sir/Madam,
I am writing to request a first-time penalty abatement for the tax year [Year] due to [briefly state reason for penalty, e.g., late filing, late payment]. My Taxpayer Identification Number (TIN) is [Your Tax ID/SSN].
I understand that penalties are assessed for failing to file or pay taxes on time. I typically file and pay my taxes accurately and on time. This was an unusual circumstance, caused by [Explain the reason for the late filing/payment. Be specific and honest. Examples: unexpected illness, natural disaster, reliance on incorrect advice]. I have attached [mention any supporting documentation, e.g., medical records, insurance claim details] to support my explanation.
I have a history of compliance with tax laws, and this is the first time I have incurred a penalty. I believe I am eligible for first-time penalty abatement based on the IRS’s guidelines.
I am committed to fulfilling my tax obligations and have already [explain what you have done to rectify the situation, e.g., filed the return, paid the outstanding tax].
I respectfully request that you consider my request for penalty abatement. Thank you for your time and consideration.
Sincerely,
[Your Signature]
[Your Typed Name]
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How to Write Letter To Request First-Time Penalty Abatement
Subject Line: Capture Attention Immediately
- Be succinct: “Request for First-Time Penalty Abatement – [Your Name/Business Name], [Tax Year]” is a solid choice.
- Reference the specific tax form or notice number, if applicable. This expedites the review process.
- Evade ambiguity. A vague subject line might get overlooked.
Salutation: Initiate with Respect
- If you know the recipient’s name, use it: “Dear Mr./Ms./Mx. [Last Name],”
- When the recipient is unbeknownst, “Dear Internal Revenue Service,” or “Dear IRS,” is acceptable.
- Maintain formality. Avoid colloquial greetings.
Introduction: State Your Case Concisely
- Declare your purpose upfront. For instance: “I am writing to request a first-time penalty abatement for the tax year [Year] due to [briefly state reason].”
- Identify yourself using your full name, Social Security number (SSN) or Employer Identification Number (EIN), and the relevant tax year.
- Express contrition for the infraction, but don’t overdo it.
Body Paragraphs: Elucidate Your Circumstances
- Provide a detailed, yet coherent, explanation of why the penalty occurred. Be transparent and forthright.
- Demonstrate that you have a history of tax compliance. Mention any years you’ve filed and paid on time.
- If the penalty resulted from extenuating circumstances (e.g., illness, natural disaster), furnish documentation to corroborate your claim.
- Articulate the steps you’ve taken to rectify the situation and prevent future occurrences.
Supporting Documentation: Fortify Your Appeal
- Include copies (never originals) of any documentation that bolsters your case. This might include medical records, insurance claims, or legal documents.
- Ensure all documents are legible and clearly labeled.
- Cross-reference the documents in your letter for easy navigation. For example: “As evidenced by the medical record attached as Exhibit A…”
Conclusion: Reiterate and Request
- Reiterate your request for penalty abatement and summarize your key arguments.
- Express your willingness to cooperate fully with the IRS in resolving the matter.
- Provide your phone number and email address for expedient communication.
Closing: End Professionally
- Use a formal closing such as “Sincerely,” or “Respectfully,”
- Type your full name below the closing.
- Include your signature above your typed name.
- Keep a copy of the letter and all supporting documentation for your records.
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Frequently Asked Questions: First-Time Penalty Abatement Request Letter
Understanding the process of requesting first-time penalty abatement can be complex. This FAQ section provides clarity on common inquiries surrounding the creation and submission of your request letter.
What is First-Time Penalty Abatement?
First-Time Penalty Abatement (FTA) is an IRS provision that may relieve you from penalties if you meet specific eligibility requirements, including a clean compliance history.
What penalties are eligible for abatement under FTA?
Typically, FTA applies to penalties for failing to file on time, failing to pay on time, and failing to deposit on time.
What are the eligibility requirements for FTA?
To qualify, you generally need to demonstrate a clean compliance history, meaning you haven’t had penalties in the past three years, and you must have filed all required returns or extensions.
What information should I include in my penalty abatement request letter?
Your letter should include your name, address, taxpayer identification number (SSN or EIN), the specific penalty you’re requesting abatement for, the tax year involved, and a clear explanation of why the penalty should be abated.
Where do I send my penalty abatement request letter?
Send your letter to the address provided on the notice you received from the IRS. If you no longer have the notice, consult the IRS website or your tax professional for the appropriate address.