IRS Penalty Abatement Letter: Sample and What to Include

Call the toll-free number at the top right of your notice. Have the notice, the penalty you want removed, and your reasons ready. The IRS says that if you ask for reasonable cause relief but qualify for First Time Abate, it will apply First Time Abate. If you do not qualify for either, or the IRS cannot approve relief by phone, you can request it in writing.

Reasonable cause is decided case by case on all the facts. For failure-to-file and failure-to-pay penalties, you must show you exercised ordinary care and prudence but were still unable to file or pay on time. Examples the IRS gives include fires, natural disasters, or civil disturbances; inability to get records; death, serious illness, or unavoidable absence of you or your immediate family; and system issues that delayed a timely electronic filing or payment.

Per the IRS, these generally are not reasonable cause on their own: relying on a tax professional, lack of knowledge of the rules, mistakes and oversights, and lack of funds. The IRS notes that other facts showing you used reasonable care and tried to comply can still support relief, so explain the full situation. Reasonable cause does not apply to some penalties, such as the estimated tax penalty. For 2025 and later returns, check whether the Automatic Exemption from Penalty already applies before writing.

Identify yourself, the tax form and tax period, the notice number, and the penalty you want removed. Then explain, as the IRS asks: what happened and when it happened; how the situation prevented you from filing or paying on time; and what you did to try to file or pay. Close by noting when you came back into compliance and asking for the penalty, and related interest, to be removed.

Attach proof that supports your timeline, such as hospital or court records or a doctor's letter with start and end dates, documentation of a natural disaster or other disturbance, copies of relevant letters and responses, and receipts or forms. Send copies, not originals, and keep a complete copy of what you send.

Illustrative outline (hypothetical): 1. Your name, address, and taxpayer identification number. 2. Tax form, tax period, notice number, and penalty amount. 3. Request: I request abatement of the failure-to-file penalty for the period listed based on reasonable cause. 4. Facts: dates and description of what happened. 5. Effect: how those events prevented timely filing or payment. 6. Compliance: when you filed or paid, and your filing history. 7. List of attachments. 8. Signature and date. Send it with Form 843 or as a written statement to the address on your notice or in the Form 843 instructions.

For an accuracy-related penalty, the IRS looks at your efforts to report the correct tax, the complexity of the issue, your education, experience, and knowledge of tax law, and the steps you took to understand your obligation or get help. If you relied on a tax advisor, it considers whether you gave the advisor all needed information and whether the advisor was competent.

If you receive a notice denying relief, the IRS's penalty appeal eligibility guidance explains next steps. Calculus Tax reviews your IRS account with Brevitax to see which penalties were assessed and which relief may apply, prepares the request, and our in-house Settlement Officer reviews it. See IRS penalty abatement or contact us.