The irs uses software called the reasonable care assistant in evaluating whether a taxpayer is eligible for a first time penalty abatement. You can use this template as a guide to help you write a letter.
You can get first time penalty abatement for the following situations.
First time penalty abatement letter sample. One more tip for a successful irs penalty abatement letter. Understanding how the reasonable care assistant evaluates your situation can boost your chances of success. However if you want to improve your chances of your request being accepted you should work with a tax professional.
Failure to file failure to pay or failure to deposit penalty. Here is a sample letter to request irs penalty abatement. You can t get the first time abatement for other circumstances.
Pattern irs penalty abatement letter taxdebthelp tax settlement penalty abatement lettersample irs penalty abatement letter a pattern fill within the clean penalty abatement petition an instance of what to ship to the irs explaining why your penalties must be abated first time waiver affordable trigger requesting abatement irs. If you are making a first time penalty abatement request for a year please see this page. The agent will run a computer search over the three prior tax years to see if you have had any tax issues.
Essentially if you miss a payment don t file a tax return or make a deposit then you have a chance to avoid the penalty. There are two ways. Say i would like to request a first time penalty abatement based on my prior compliance for tax year insert appropriate year.
If there are no prior tax issues the agent will grant a penalty abatement.