Here is a sample of how to write a letter to the IRS to request IRS penalty abatement. These two templates can help you write a letter based on your current circumstances.
However, you should consult with a tax professional if you want to enhance your chances of getting your request approved.
Please be aware that you can also apply for penalty abatement by calling the IRS at 1-800-829-1040 or the number on your notice, or by using form 843.
IRS Penalty Abatement Letter Sample First Time Penalty Abatement (FTA)
If a taxpayer fails to pay, file, or deposit tax under the IRS’s rules, the IRS will waive penalties if certain requirements are met.
If you’re eligible for first-time penalty abatement
More: IRS First Time Penalty Abatement Qualifications
You may do it through phone, mail, or even the help of a tax professional (preferred).
[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]
Sample Letter 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 don’t have to pay any taxes. It’s a good idea if you have the money. It may also be beneficial to your case. You may apply for an installment agreement to pay off your taxes in installments if you don’t possess the cash.
Make sure to only send copies of your supporting documents when you submit them. The IRS is notorious for losing paperwork.
Tax professional Help With Penalty Abatement
Debtstrategists has a large network of tax professionals from all across the country who can assist with a range of tax-related issues.
If you’re seeking a tax specialist with penalty abatement expertise, call now.
