What Is the Format of a Letter of Tax Abatement?

The format for a penalty abatement letter should outline the request by an individual or a business for an abatement or reduction of penalties assessed by the Internal Revenue Service, says The Tax Adviser. Generally, a taxpayer asks for relief because of an IRS error, administrative waivers, statutory exceptions or reasonable cause.

The top of the letter should provide the date and the IRS department address, says BackTaxesHelp.com. From there, the writers should list the reason for the letter and include the taxpayer's name, tax return year and taxpayer Social Security number. This information at the beginning of the letter allows the IRS an easy way to locate the taxpayer details in its database.

The beginning paragraph should mention the IRS notice received, and include the penalty and IRS regulation number so the agency knows this letter is in response to the IRS imposed assessment, explains BackTaxesHelp.com. The second paragraph outlines the situation that led to the penalty in the first place.

Lastly, the writer should state why the taxpayer feels his position warrants the waiver of the penalty, says BackTaxesHelp.com. The taxpayer should enclose a partial payment to apply towards the taxes the taxpayer owes as a good-faith effort.