Show Definitely, no taxpayer would like to have tax penalties leveled against them, not even in cases when it is deserved due to certain actions carried out to violate the tax code by the taxpayer. No taxpayer also likes paying the imposed tax penalties, especially, when it is an extremely large amount to pay or when it seems to be unfairly imposed despite unavoidable circumstances on the part of the taxpayer. Most taxpayers would even wonder why the tax penalties are being imposed anyways, but the truth still remains that more than the monetary need of the internal revenue service, the IRS enforces the tax penalties mainly to punish offenders and discourage non-compliance to the tax code among taxpayers totally. For this reason, the IRS gave an allowance for taxpayers to be able to request a tax penalty waiver if they have a legitimate reason. If the reason given by the taxpayer for non-compliance is deemed reasonable enough, the waiver for the tax penalty can be approved. Additionally, there is an administrative tax penalty waiver available to taxpayers breaking the tax code and receiving a first-time tax penalty. It is called a first-time penalty administrative abatement waiver (FTA). The opportunity to request a tax penalty waiver is mainly to help taxpayers that got penalized unfairly as well as those that are repentant for violating the tax code for the first time and are willing to comply. However, despite this available opportunity, many taxpayers do not know there is a way to save themselves from the hundreds or thousands of dollars they will likely spend on paying for the tax penalty by writing an abatement request letter and requesting a waiver. What is a penalty abatement request letter?A letter written to the IRS for this effect of waiving a tax penalty levied against the taxpayer, therefore, is what we call a penalty abatement request letter. This penalty abatement request letter is usually written to the IRS to ask the IRS to forgive a tax penalty for a reasonable reason. This letter also always contains detailed explanations about the unique situation that led to the non-compliance of the taxpayer alongside an explanation of reasons that qualifies the taxpayer for a waiver for the tax penalty. A tax penalty waiver can be requested for varying IRS imposed tax penalties like the “failure-to-file” for taxpayers that default in filing their tax returns, “failure-to-pay” for taxpayers that refuse to pay the amount owed in tax liabilities, and the “failure-to-deposit” tax penalties. To request that a tax penalty be waived, the taxpayer would be required to write a penalty abatement letter to the IRS to make this request. For taxpayers willing to write a penalty abatement letter to the IRS, you should know that there are a few necessary things that need to be included in the letter to be sent. Some of these important things to take note of note include:
Template for a penalty abatement letterThis template for a Penalty abatement letter can serve as a guide for taxpayers the have no idea how to proceed with their Penalty abatement letter. It’s an example of how your letter should look like.
To: Penalty abatement Coordinator, Internal Revenue Service, (Complete the address as stated on your tax penalty notice)
You do not have to do this yourself. We are professionals and can help ensure you get it right. Contact us today. About usWe are a tax relief firm dedicated to giving you the best results regarding resolving your tax debts. Our team of qualified professionals is available round the clock to provide you with the assistance you need. Contact us now at 888-585-8629 or 617-430-4674 or send us an email at [email protected]. For more information, email [email protected] Internet subscribers, users, and online readers are advised not to act upon this information without seeking the service of a professional accountant. Any U.S. federal tax advice contained in this website is not intended to be used for the purpose of avoiding penalties, of any kind, under U.S. federal tax laws. How do you write a penalty waiver letter?State the type of penalty you want removed. Include an explanation of the events and specific facts and circumstances of your situation, and explain how these events were outside of your control. Attach documents that will prove your case.
How can I get the IRS to waive a penalty?If we cannot approve your relief over the phone, you may request relief in writing with Form 843, Claim for Refund and Request for Abatement. To reduce or remove an estimated tax penalty, see: Underpayment of Estimated Tax by Individuals Penalty.
Can you negotiate with IRS to remove penalties and interest?First, you should know that it is possible to negotiate for an abatement of penalties and interest, but it is at the discretion of the IRS agent with whom you are working. Second, it takes time, sometimes a year or two, to negotiate with the IRS for a reduction of interest or penalties.
Will IRS waive late filing penalties?Failure to File or Pay Penalties
You may qualify for penalty relief if you demonstrate that you exercised ordinary care and prudence and were nevertheless unable to file your return or pay your taxes on time.
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