Reasons Why Should You Write Penalty Abatement Letter


A waiver of penalty can be right for the taxpayer. The waiver letter is required for the person who needs to eliminate the penalty. Before you write the letter, you demand the waiver must read the contract to ensure they fulfill with terms associated with the waiving payment. The request to waive penalty is not a guarantee that it is accepted. If the letter is composed professionally and gives the right reason, there is an opportunity for the person will help. 

An individual has the right to penalty abatement if they can pay the tax owed. If you apply for a reduction of penalty predictably, you pay the tax charge in full. You should convince that you should not responsible for the penalty. If you explain a valid reason why you are unable to pay the tax, then get a reduction in penalty. Here are some of the reasons IRS will accept penalty abatement. 

  • Civil disturbance like a flood, wind storm, riot, and others 
  • Family member death
  • Major illness of a family member
  • Records theft or destruction 
  • Unemployment for a longer period 
  • Reasonable trust on the wrong suggestion given to you via phone by the IRS
  • Major trouble to your life
  • Failure to pay due to regular care in the business operations

Explain Your Request Clearly 

You can start the waiver letter with a clear explanation related to your request. Explain that you are requesting the penalty charge or a particular fee. You can communicate the supporting, name, venue, and monetary figure. When sending a letter of penalty waiver, you can add a copy of contact, email printout, receipts, and others that can agree with the statement. If you are responsible for the wrong tax, IRS does not demand you to pay the penalty on the tax if your request for penalty reduction is successful. You can gain huge benefits when IRS granted your request.