Penalty Abatement Letter

When the IRS sends you a penalty assessment letter, you have the right to reply with a penalty abatement letter. Your penalty abatement letter will address your reasons for requesting IRS penalty abatement.

In your penalty abatement letter, you should state the amount of penalty assessment the IRS demands. In your penalty abatement letter, you should also formally:

• protest the penalty assessment by the IRS, and
• request for penalty abatement

Most importantly, your penalty abatement letter must explain in the most concise and sincere manner why you failed to comply with certain tax laws that led to the penalty assessments by the IRS. It is in your best interest to declare that you did not act in a 'willfully negligent manner' in your penalty abatement letter and that your lack of tax law compliance was due to 'reasonable cause'. You can also quote the tax law.

Finally, you must formally request for the IRS penalty abatement. Before you end your penalty abatement letter, you must declare under penalty of perjury that everything in your penalty abatement letter is factual, truthful and correct.

In your penalty abatement letter, you can personal and bring the IRS' attention to the facts that you tried to comply with tax laws but certain unavoidable circumstances made it impossible. If you can prove that you tried in every possible way, your penalty abatement letter will be acknowledged.