Sample IRS Penalty Abatement Request Letter

sample IRS penalty abatement letter

Here are sample letters to request IRS penalty abatement. You can use these two templates as a guide to help you write a letter depending on your situation. However, if you want to improve your chances of your request being accepted, you should work with a tax professional. If you are making a first-time penalty abatement request for a year, please see this page. If you are requesting the abatement of a certain penalty for more than one year, you will need to have reasonable cause. Please note, you can also request penalty abatement by calling the IRS as well at 1-800-829-1040 or the number on your notice or by levearging form 843.

Letter If Requesting First Time Penalty Abatement (FTA)

The IRS does provide first-time penalty abatement for failing to pay, failing to fiie, and failure to deposit if the taxpayer meets certain conditions. You should read more about first time penalty abatement here. If after reading the previous aforementioned article you believe you qualify, then request 1st-time penalty abatement. You can call, send a letter, or even leverage a tax professional (recommended) to do it on your behalf. 

[Start of Letter]

Internal Revenue Service
Penalty Abatement Coordinator
[address provided on notice of tax amount due]
[indicate what tax form it is pertaining to, e.g. 1040, 1065, etc, and the tax period]

Re: Request for Penalty Abatement Under FTA Administrative Waiver

[taxpayer name(s)]
[address]
[SSN or TIN]

[Date]

To Whom it May Concern,

[I/We] [am/are] writing to request the [failure to file, failure to pay, or failure to deposit] penalty be abated based on IRM 20.1.1.3.6.1 that discusses RCA and First Time Abate "First Time Abate (FTA)" administrative waiver. This is referring to the [enter specific penalty and penalty amount].

[I/We] believe [I/we] meet the criteria for requesting FTA in regards to the [failure to file, failure to pay, or failure to deposit] because of the following reasons: 

1) Compliant with Filings - [I/We] filed all required returns or extensions and do not have any outtstanding tax return requests nor abatements
2) 3 Year Clean Penalty History - [I/We] have not incurred tax penalties for the 3 prior years [note: you can have estimated tax penalty though, as it is allowed]
3) Compliant With Payments: [I/We] have paid all my taxes due, or set up an installment agreement which I am current with

Thank you for your consideration. Stay safe. 

 If you have any questions or need any additional information, you can reach me at [phone number].

Best, 

[Your Name]

Letter If Requesting Abatement for More Than One Year After Getting Letter

Internal Revenue Service
Penalty Abatement Coordinator
[address provided on notice of tax amount due]
[indicate what tax form it is pertaining to, e.g. 1040, 1065, etc, and the tax period]

Re: Request for Penalty Abatement

[taxpayer name(s)]
[address]
[SSN or TIN]

[Date]

To Whom it May Concern:

I am writing to request an abatement of [enter specific penalty] in the amount of [enter amount] as assessed in the enclosed notice that is dated [month/day/year]

The reason why I _________(pick one)

  • Paid late
  • Filed late
  • Failed to deposit

was because ____________ (pick one)

  • I had a serious medical condition
  • My house burned down
  • My documents were stolen
  • A close family member died
  • Any other reason that prevented you from complying with the IRS requirements

Please find the enclosed______ (describe your supporting documents)

  • Death notice of a family member
  • Letter from a doctor stating the conditions of your illness that prevented you from filing or paying
  • Picture of the house burned down in the fire
  • Insurance notice of theft of private property and documents
  • Any other proof or supporting documents

Please accept my petition for abatement of penalties owed for reasonable cause. See IRM 20.1.1.3.2. If you have any questions or need any additional information, you can reach me at [phone numer].

Sincerely,

John Doe

Note: You do not need to include a tax payment. However, if you have the money, it is a good idea. It may even help your case. If you don’t have the money, you can apply for an installment agreement to make payments on your taxes owed.

When you send your supporting documents, make sure to only send copies. The IRS is known for “losing” documents.

Help With Penalty Abatement Using TaxCure

At TaxCure, we have a large network of professionals from around the country who can help with a wide variety of tax problems. We have a unique algorithm to help display only professionals that can help with your particular problems. If you are looking for assistance with a tax professional who has penalty abatement experience, you can use this link to view the top-rated pros that can help, or you can start a search below: 

 

Find and Assess Licensed Tax Professionals To Solve Your Tax Issues

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e.g. 10011 or New York, New York

Find and Assess Licensed Tax Professionals To Solve Your Tax Issues

Select Tax Agency/Agencies
e.g. 10011 or New York, New York