IRS Penalty Abatement Sample Letter
If you owe back taxes to the Internal Revenue Service (IRS) and have recently been assessed a penalty for this debt, you are allowed to request relief for this penalty if you have a valid reason. A penalty abatement letter is a written request to the IRS for penalty relief for one of the following reasons:
- You did not previously have to file a return or you have no penalties for the 3 tax years prior to the tax year in which you received a penalty (first-time penalty abatement).
- You filed all currently required returns or filed an extension.
- You have paid, or arranged to pay, any tax due.
- You have reasonable cause for why you are unable to pay these penalties.
If you are requesting a penalty abatement for a reasonable cause, you can use the sample letter below to help write your request. You should always address this correspondence to the Internal Revenue Service and send it to the address listed on the written notice of the tax due:
IRS Penalty Abatement Sample Letter Template
To: Internal Revenue Service
Penalty Abatement Department
City, State, Zip Code
Date: [ENTER DATE]
To Whom It May Concern:
I am writing to respectfully request the abatement of penalties, totaling $[ENTER DOLLAR AMOUNT] that was assessed related to the attached notice dated [ENTER DATE OF NOTICE].
The primary reason that…[CHOOSE 1 OF THE FOLLOWING THAT BEST APPLIES TO YOUR SITUATION]:
- I paid late
- I filed late
- I failed to report income
Was because….[CHOOSE 1 OF THE FOLLOWING THAT BEST APPLIES TO YOUR SITUATION]:
- I suffered from a serious medical condition
- I suffered a catastrophic event (ie. your house burned down or all of your tax materials were stolen)
- A close family member died
- Other (significant event or “reasonable cause”)
Please find attached documents which further detail the circumstances that prevented me from (paying late/filing late/failing to report income).
[Note: You should attach all relevant supporting documents including letters from physicians, death notice, pictures, and any other documents that can support your position.]
Please accept this petition for abatement of penalties due to reasonable cause. I can be reached at [ENTER PHONE NUMBER] with questions or if you need additional information. You will also find the payment of the taxes that I owe, minus the penalties assessed.
[Note: You do not have to include payment but the IRS will generally look at your request more favorably if you can. If you cannot make your payment, consider applying for an installment agreement or offer in compromise.]
[ENTER FIRST AND LAST NAME]
Success Tax Relief: Offering Tax Support When You Need It
If you have questions about this sample letter, or would like to partner with a reputable and trusted full-service tax firm that can help you navigate this process, contact the team at Success Tax Relief at 877-825-1179 to speak with a member of our team. We can help with penalty abatement requests, applications for installment agreements, filing an Offer in Compromise, as well as traditional tax support and support during an IRS audit. Contact us for a free consultation today!