Sample IRS Penalty Abatement Request Letter

By following these steps, you can structure an effective request letter that improves your chances of a favorable response. If you need additional help, consult a tax professional to ensure your letter aligns with IRS policies.

Sample IRS Penalty Abatement Request Letter

Navigating IRS penalties can be challenging, but understanding how to effectively request an abatement can significantly alleviate financial burdens. If you’re unsure about your eligibility or need assistance with your request, consider consulting with a tax professional who specializes in IRS issues. Here’s a comprehensive guide to writing an IRS Penalty Abatement Request Letter. This IRS letter requests the IRS to remove or reduce penalties due to specific circumstances that affected your ability to pay or file on time.

Your Sample Penalty Abatement Request Later

John Doe
123 Main Street
Anytown, USA 12345
[Date]

Internal Revenue Service
[IRS Address from Notice]
City, State, Zip Code

Subject: Request for Penalty Abatement
Tax Year(s): 2022
Tax Identification Number (TIN): [Your SSN or EIN]

Dear IRS Penalty Abatement Specialist,

I am writing to formally request an abatement of the penalties assessed against me due to [late filing or late payment] for the tax year [. Due to unforeseen circumstances beyond my control, I was unable to meet my tax obligations on time, and I respectfully ask for your consideration in waiving these penalties.

The reason for the delay was [describe your reason here; e.g., “a severe illness that required hospitalization and left me unable to handle personal or financial matters”]. As a result, I was temporarily unable to complete my tax filing or payment as scheduled. I have attached [relevant documentation, e.g., medical records, financial statements] to demonstrate the circumstances that affected my ability to fulfill my tax responsibilities.

Please know that, as soon as I was able, I promptly filed my return and completed the necessary payments. I have made every effort to stay compliant with IRS requirements, and this situation was an exception to my otherwise consistent history of timely filings and payments.

I am aware of the IRS First-Time Penalty Abatement policy, and given that this is my first request for penalty relief, I hope to be considered for abatement under this provision. I have a history of compliance, which I believe demonstrates my intent to fulfill my tax obligations responsibly.

Thank you for your understanding and for taking the time to consider this request. I would greatly appreciate a written confirmation of your decision once it has been reviewed. Should you need any further information to support my request, please do not hesitate to contact me.

Sincerely,

[Signature if mailing]
John Doe
[Your Contact Information, e.g., Phone Number, Email]

How to Write an IRS Penalty Abatement Request Letter

How to Write an IRS Penalty Abatement Request Letter?

Your Request Letter

Your Name
Your Address
City, State, Zip Code
Date

IRS
Address as per IRS correspondence
City, State, Zip Code

Subject: Request for Penalty Abatement
Tax Year(s): [Specify year(s) involved]
Tax Identification Number (TIN): [Your SSN or EIN]

Body of the Letter

  1. Start with a Polite Opening and State Your Purpose
    Example:Dear IRS Penalty Abatement Specialist,I am writing to formally request an abatement of the penalties assessed against me for [mention the reason, such as late filing or payment] for the tax year(s) [specify year(s)].
  2. Describe Your Situation Clearly
    • Explain the circumstances that led to the delay or non-compliance.
    • Mention how this situation was out of your control or due to reasonable cause.
    Example:Unfortunately, due to [reason, such as a serious illness, natural disaster, financial hardship, etc.], I was unable to [file/pay taxes] on time. These circumstances significantly impacted my ability to fulfill my tax obligations.
  3. Explain How You Acted Responsibly
    • Show that, despite the situation, you acted in a way to minimize the problem.
    • Mention steps taken to resolve your tax responsibilities promptly once the issue was under control.
    Example:As soon as I was able to resume regular activities, I promptly submitted my [tax return/payment]. I have since complied with my tax obligations to the best of my ability and worked diligently to fulfill any outstanding payments.
  4. Reference IRS Guidelines or ‘First-Time Abatement’ if Applicable
    • If this is the first time you’ve requested an abatement, mention the IRS First-Time Penalty Abatement policy.
    Example:Given that this is my first request for penalty relief, I am respectfully requesting consideration under the IRS First-Time Penalty Abatement policy. I have a history of timely filings and payments, which demonstrates my commitment to meeting my tax responsibilities.
  5. Provide Supporting Documents
    • Include any documentation that supports your claim, such as medical records, insurance claims, or financial statements.
    Example:I have enclosed copies of [medical records, financial statements, or other supporting documents] that demonstrate the nature of my situation and my efforts to resolve this matter promptly.
  6. Conclude with a Polite Closing and Request a Written Confirmation
    Example:I kindly request that you review this request and consider an abatement of the penalties. I am committed to maintaining compliance moving forward. Please send me a written response once a decision has been made.Thank you for your time and understanding.Sincerely,
    [Your Signature (if mailing)]
    [Your Printed Name]
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