A “Sample Letter To The IRS For Penalty Abatement” is a request. It asks the IRS to remove penalties. People write it when they missed a tax deadline. They might have faced unforeseen issues.
Need to write such a letter? Feeling lost? Don’t worry! We’ve got your back.
This article provides sample letters. Use them as templates. Tailor them to your situation. Make writing to the IRS easier!
Sample Letter To The Irs For Penalty Abatement
[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 – [Your Tax Year] – [Your Tax ID/SSN]**
Dear Sir/Madam,
I am writing to request a penalty abatement for the [Specific Penalty, e.g., Failure to File] penalty assessed for the tax year [Tax Year]. My Tax ID/Social Security Number is [Your Tax ID/SSN].
I understand that penalties are assessed for late filing or payment; however, I believe there was reasonable cause for the delay. [Clearly and concisely explain the reason for the late filing or payment. Examples include: serious illness, death in the family, natural disaster, reliance on incorrect advice from a tax professional, or other unavoidable circumstances. Be specific and provide dates where possible.]
[If applicable, add: I have attached supporting documentation to this letter, including [List Documents, e.g., medical records, death certificate, insurance claim].]
I have since [Explain what you have done to rectify the situation, e.g., filed the return, paid the outstanding balance]. I am committed to fulfilling my tax obligations in a timely manner.
I respectfully request that you consider my circumstances and grant a penalty abatement for the tax year [Tax Year].
Thank you for your time and consideration in this matter.
Sincerely,
[Your Signature]
[Your Typed Name]
How to Write Letter To The IRS For Penalty Abatement
Subject Line: Clarity is Key
The subject line is your initial communiqué; don’t obfuscate its purpose. It should be straightforward and immediately inform the IRS about the letter’s intention.
- Use: “Request for Penalty Abatement – [Your Name] – [Tax Year] – [Tax ID]”
- Replace the bracketed information with your specific details.
- Example: “Request for Penalty Abatement – Jane Doe – 2022 – 123-45-6789”
Salutation: A Formal Overture
Begin with a respectful salutation. While you might feel aggrieved by the penalty, civility is paramount. Err on the side of formality unless you have a prior established rapport.
- Use: “Dear Internal Revenue Service,”
- Avoid using a specific person’s name unless you are absolutely certain of their identity and title.
Introduction: State Your Case Succinctly
The introductory paragraph should immediately articulate your reason for writing. Be concise; the IRS processes a prodigious amount of correspondence daily. Get to the point.
- State that you are writing to request a penalty abatement for a specific tax year.
- Clearly identify the tax form in question (e.g., Form 1040, Form 941).
- Briefly mention the type of penalty you are contesting (e.g., failure to file, failure to pay).
Body Paragraphs: The Genesis of Your Delinquency
This is where you meticulously delineate the circumstances that led to the penalty. Honesty and transparency are crucial. Explain why you believe the penalty should be waived. Substantiate your claim with documentation, if possible.
- Explain the “reasonable cause” that prevented you from fulfilling your tax obligations. Examples include:
- Serious illness or injury
- Death or serious illness of a family member
- Unavoidable absence
- Destruction of records due to fire, casualty, or other disaster
- If relying on professional advice, explain why you believed it was sound.
- Demonstrate that you acted responsibly and made a genuine effort to comply with tax laws.
- Include dates, names, and specific details to bolster your narrative.
- Attach supporting documentation as exhibits.
Demonstrate Remedial Action: Rectifying the Situation
Show the IRS that you have taken steps to rectify the situation. This demonstrates good faith and a commitment to future compliance. Proactive measures resonate positively.
- Confirm that you have now filed the delinquent return or paid the outstanding tax liability.
- If you are on a payment plan, state the terms and your adherence to it.
- Outline any changes you have implemented to prevent future occurrences.
Closing: A Plea for Amicability
Reiterate your request for penalty abatement and express your willingness to cooperate further. Maintain a respectful and professional tone. Avoid demands or ultimatums.
- Thank the IRS for considering your request.
- Reiterate your belief that you had reasonable cause for the delinquency.
- Offer to provide additional information if needed.
Signature and Contact Information: Seal the Deal
Conclude with a professional closing and your contact information. Ensure the IRS has all the necessary details to respond to your appeal. Leaving out key information can protract the process.
- Use: “Sincerely,” or “Respectfully,”
- Sign your name (if mailing a physical letter).
- Type your full name.
- Provide your phone number and email address.
- Include the date.
Frequently Asked Questions: Penalty Abatement Request Letter to the IRS
This section addresses common inquiries regarding penalty abatement request letters to the Internal Revenue Service (IRS). Understanding the process can improve your chances of a successful outcome.
What is a penalty abatement?
Penalty abatement is the IRS’s process of removing or reducing penalties assessed on taxpayers for various reasons, such as reasonable cause or first-time penalty abatement.
What is “reasonable cause” for penalty abatement?
Reasonable cause is a valid explanation showing you exercised ordinary business care and prudence but were still unable to comply with your tax obligations due to circumstances beyond your control.
What information should I include in my penalty abatement request letter?
Your letter should include your name, address, Social Security number (or Employer Identification Number), the tax year in question, the specific penalties you are requesting abatement for, and a detailed explanation of your reasonable cause.
How do I submit my penalty abatement request letter?
You can submit your letter by mail to the address provided on the IRS notice you received. You can also fax the letter if a fax number is provided on the notice.
How long does it take for the IRS to process a penalty abatement request?
The processing time can vary, but it typically takes several weeks to several months for the IRS to review and respond to a penalty abatement request.