Taxpayers can request relief from failure-to-file, failure-to-pay, and failure-to-deposit penalties in three ways, depending on their situation:
- Before the IRS assesses a penalty, the taxpayer can file a penalty non assertion request with a paper return to request that the IRS not automatically assess a penalty.
- After the IRS has assessed a penalty, the taxpayer can request penalty abatement, typically by writing a penalty abatement letter or by calling the IRS. Tax professionals can also request abatement using IRS e-services.
- After the taxpayer has paid the penalty, the taxpayer can request a refund using Form 843, Claim for Refund and Request for Abatement. The taxpayer must file the claim within three years of the return due date or filing date, or within two years of the date the penalty was paid.
Generally, relief from penalties falls into four separate categories:
- reasonable cause,
- statutory exceptions,
- administrative waivers, and
- correction of IRS error.
Penalty Abatement Request Letter - Sample
You should also complete IRS Form 843 – Claim for Refund and Request for Abatement
Date
Penalty Abatement Coordinator
Address (as stated on your IRS notice of penalty)
Address (as stated on your IRS notice of penalty)
Your Name
Your Address
Your Social Security Number
Your Address
Your Social Security Number
RE: Request for Penalty Abatement
Dear Sir/Madam:
I am requesting an abatement of the penalties on the taxes that I owe. These penalties are in the total amount of $___________, as shown by the IRS tax notice of penalties dated ____________, which I have enclosed.
(select one of the following options)
_____ paid my taxes late
_____ filed my taxes late
_____ did not report income
_____ filed my taxes late
_____ did not report income
for the following reason(s):
(In this section of your letter, describe the reason(s) that you paid your taxes late, filed your taxes late, or failed to report income. Common examples of valid reasons include the death of a family member, serious illness of you or a family member, a civil disturbance such as a tornado, flood, or fire, or any other reason that prevented you from complying with the IRS.)
.______________________________________________________
.______________________________________________________
.______________________________________________________
Please find enclosed a copy of documentation that supports my reason(s) for requesting an abatement of penalties.
(In this section of your letter, describe the type of documentation supporting the reason(s) that you paid your taxes late, filed your taxes late, or failed to report income. Examples of supporting documentation include death certificates, statements from a doctor regarding illness or a medical condition, or pictures showing your home following a fire or hurricane.)
.______________________________________________________
.______________________________________________________
.______________________________________________________
(Omit the next sentence if you cannot enclose a payment toward your taxes. However, you should try to enclose a payment if possible.)
Please approve my request for abatement of penalties for good cause. I also have enclosed a payment in the amount of $_____________ toward the taxes that I owe.
If you have any further questions, please feel free to contact me at __________________ (your phone number, including area code).
Sincerely,
(Your Signature)
Your Name
You can only receive a penalty abatement from the IRS if you can show good or reasonable cause for being unable to pay your delinquent taxes in full. Reasons beyond your control that made you unable to determine your tax or pay your tax even though you were using ordinary care in your business operations.
References:
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