What Is a Sample Penalty Abatement Request Letter?

A tax penalty abatement letter provides the IRS with at least one strong reason that explains why the taxpayer should not have to pay any penalties associated with taxes due. According to CNN Money, this letter should follow the IRS guidelines when stating the reason for a penalty waiver. The letter is written in a professional tone and includes any important taxpayer details.

At the very top of the letter list the date and IRS department address. Underneath, list what the letter is regarding and include the taxpayer name, tax return year and document locator number and taxpayer social security number. Placing all of this information first makes it easier for the IRS to look up taxpayer details in the database.

The opening paragraph mentions the IRS notice received in specific detail. It should include the exact penalty and IRS regulation number so that the agency understands this is a response to their assessment. The second paragraph outlines the taxpayer's situation that led to the penalty. For example, an illness that prevented paying taxes on time. This section should be very detailed.

The final paragraph firmly states the taxpayer's position as to why they feel the penalty should be waived. The exact amount of the penalty can be included in this section. The taxpayer can opt to send the letter by registered mail to ensure receipt.