What is a First Time Abatement Request?
A First Time Abatement request is essentially your formal way of asking the IRS to remove penalties that have been added to your tax bill. These penalties can be for failing to pay on time or for filing your tax return late. The IRS has a specific program designed for taxpayers who have a clean compliance history but ran into trouble for a specific tax year. The importance of a well-written request cannot be overstated, as it directly influences the IRS's decision. Here’s what you should know about these requests:- You generally need a good reason for why you missed a deadline.
- You must have paid or arranged to pay the actual tax owed.
- You can't have any other penalties from previous years that you're trying to get rid of.
- Be Honest and Clear: Explain what happened in simple terms.
- Provide Evidence (if possible): If you had a medical emergency, include doctor's notes. If it was a natural disaster, provide proof of that.
- Show Your Commitment: Demonstrate that you've been responsible with your taxes in the past and intend to be in the future.
IRS First Time Abatement Letter Sample for Late Payment
Late Payment Penalty Abatement Request
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Your Phone Number]
[Your Email Address]
[Date]
Internal Revenue Service
[IRS Address - find the correct one for penalty abatement]
[IRS City, State, Zip Code]
Subject: Request for First Time Abatement of Penalty - Tax Year [Year of Late Payment] - Social Security Number: [Your SSN]
Dear Sir or Madam,
I am writing to respectfully request the abatement of the late payment penalty assessed on my tax return for the tax year [Year of Late Payment]. My Social Security Number is [Your SSN].
I have always strived to meet my tax obligations on time. However, during the tax period ending [Date the tax was due], I experienced [briefly explain your reason for late payment, e.g., unforeseen medical expenses, a temporary job loss, a family emergency]. This situation made it impossible for me to make the full payment by the due date.
I have since paid the full tax amount owed, as well as any interest accrued. I have also filed my tax returns on time for the preceding three years and have no prior history of tax penalties. I am committed to fulfilling my tax responsibilities going forward.
I would appreciate it if you would consider my request for First Time Abatement. Thank you for your time and consideration.
Sincerely,
[Your Signature]
[Your Typed Name]
IRS First Time Abatement Letter Sample for Late Filing
Late Filing Penalty Abatement Request
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Your Phone Number]
[Your Email Address]
[Date]
Internal Revenue Service
[IRS Address - find the correct one for penalty abatement]
[IRS City, State, Zip Code]
Subject: Request for First Time Abatement of Penalty - Tax Year [Year of Late Filing] - Social Security Number: [Your SSN]
Dear Sir or Madam,
I am writing to request the abatement of the late filing penalty assessed for my tax return for the tax year [Year of Late Filing]. My Social Security Number is [Your SSN].
I understand that my tax return for [Year of Late Filing] was filed late. The delay was due to [briefly explain your reason for late filing, e.g., an inability to obtain necessary tax documents, a significant personal illness, a delay in receiving crucial financial information from a third party].
I have since filed the delinquent tax return and paid the full amount of tax due, along with any applicable interest and penalties. I have a good compliance history with the IRS, having filed and paid my taxes on time for the past three years. This was an isolated incident, and I have taken steps to ensure timely filing in the future.
I kindly request that you consider my request for First Time Abatement of the late filing penalty. Thank you for your understanding and consideration.
Sincerely,
[Your Signature]
[Your Typed Name]
IRS First Time Abatement Letter Sample with Supporting Documents Mentioned
Request with Mention of Supporting Documents
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Your Phone Number]
[Your Email Address]
[Date]
Internal Revenue Service
[IRS Address - find the correct one for penalty abatement]
[IRS City, State, Zip Code]
Subject: Request for First Time Abatement of Penalty - Tax Year [Year] - Social Security Number: [Your SSN]
Dear Sir or Madam,
I am writing to request the abatement of penalties assessed on my tax account for the tax year [Year]. My Social Security Number is [Your SSN].
During the period when my tax obligation was due, I encountered [briefly explain the reason, e.g., a severe personal illness, a family crisis requiring my full attention]. This unforeseen circumstance prevented me from meeting my filing and/or payment deadlines.
I have attached copies of supporting documentation, including [list the documents, e.g., a doctor's note dated [date], a police report, a letter from my employer confirming the situation], to substantiate my claim. I have since paid the full tax due and any applicable interest. I have a consistent record of timely compliance with IRS requirements in prior years.
I kindly request that you review my case and grant me First Time Abatement for these penalties. Thank you for your consideration of this matter.
Sincerely,
[Your Signature]
[Your Typed Name]
IRS First Time Abatement Letter Sample for a Business
Business Penalty Abatement Request
[Business Name]
[Business Address]
[Business City, State, Zip Code]
[Business Phone Number]
[Business Email Address]
[Date]
Internal Revenue Service
[IRS Address - find the correct one for penalty abatement]
[IRS City, State, Zip Code]
Subject: Request for First Time Abatement of Penalty - Tax Year [Year] - Employer Identification Number (EIN): [Your EIN]
Dear Sir or Madam,
We are writing on behalf of [Business Name] to request the abatement of penalties assessed for the tax year [Year]. Our Employer Identification Number is [Your EIN].
During the period in question, [Business Name] experienced [briefly explain the reason, e.g., significant cash flow issues due to a major client defaulting, unexpected and substantial equipment failure that disrupted operations, a key employee responsible for tax matters leaving abruptly without adequate handover]. This situation unfortunately impacted our ability to meet our tax filing and/or payment obligations on time.
We have since settled the outstanding tax liability and any accrued interest. As a business, we have a strong history of compliance, with all previous tax filings and payments made on time. We have taken corrective measures to prevent similar issues from arising in the future.
We respectfully request that you consider our business for First Time Abatement of these penalties. We appreciate your understanding.
Sincerely,
[Authorized Signatory Name]
[Title]
[Business Name]
IRS First Time Abatement Letter Sample with Emphasis on Good Faith Effort
Request Emphasizing Good Faith
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Your Phone Number]
[Your Email Address]
[Date]
Internal Revenue Service
[IRS Address - find the correct one for penalty abatement]
[IRS City, State, Zip Code]
Subject: Request for First Time Abatement of Penalty - Tax Year [Year] - Social Security Number: [Your SSN]
Dear Sir or Madam,
I am writing to request the abatement of the penalty assessed against my tax account for the tax year [Year]. My Social Security Number is [Your SSN].
I want to assure you that I have always made a good faith effort to comply with my tax obligations. During the tax period ending [Date the tax was due], I encountered [briefly explain the situation]. While this situation was challenging, I promptly took steps to resolve my tax liability as soon as I was able to do so.
I have now paid the full tax amount due, along with any applicable interest. I have no history of penalties for the three preceding tax years. This was an unusual circumstance for me, and I am committed to maintaining my record of timely filings and payments in the future.
I kindly ask that you consider this as a request for First Time Abatement, recognizing my commitment to good faith tax compliance. Thank you for your time and attention.
Sincerely,
[Your Signature]
[Your Typed Name]
IRS First Time Abatement Letter Sample for Incorrect Address Issues
Request Due to Address Issues
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Your Phone Number]
[Your Email Address]
[Date]
Internal Revenue Service
[IRS Address - find the correct one for penalty abatement]
[IRS City, State, Zip Code]
Subject: Request for First Time Abatement of Penalty - Tax Year [Year] - Social Security Number: [Your SSN]
Dear Sir or Madam,
I am writing to request the abatement of penalties associated with my tax return for the year [Year]. My Social Security Number is [Your SSN].
The reason for the penalty was a failure to receive important IRS correspondence related to my tax obligations for that year. Unfortunately, during that period, I had moved and my official address with the postal service was not updated correctly, or I experienced a postal delivery issue. As a result, I did not receive the notices that would have alerted me to the filing or payment requirement.
As soon as I became aware of the outstanding tax and penalties, I took immediate action to resolve the matter. I have paid the full tax due and any accrued interest. I have a clean record of tax compliance for the three years prior to this incident. I have since updated my address with the IRS and will ensure all future correspondence is received promptly.
I would be very grateful if you would grant me First Time Abatement for this penalty, given the circumstances related to receiving IRS communications.
Sincerely,
[Your Signature]
[Your Typed Name]
IRS First Time Abatement Letter Sample for Multiple Penalties in One Year
Request for Multiple Penalties
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Your Phone Number]
[Your Email Address]
[Date]
Internal Revenue Service
[IRS Address - find the correct one for penalty abatement]
[IRS City, State, Zip Code]
Subject: Request for First Time Abatement of Penalties - Tax Year [Year] - Social Security Number: [Your SSN]
Dear Sir or Madam,
I am writing to respectfully request the abatement of multiple penalties assessed on my tax account for the tax year [Year]. My Social Security Number is [Your SSN].
During the tax year [Year], I experienced [briefly explain the situation that led to multiple issues, e.g., a combination of a serious health crisis and unexpected job loss that significantly impacted my financial stability and ability to manage my tax affairs]. This difficult period unfortunately resulted in both a late filing and a late payment.
I have since taken responsibility by filing the overdue tax return and paying the full amount of tax owed, as well as any interest. I have a history of responsible tax behavior, having filed and paid on time for the three years prior to this situation. This was an anomaly due to extenuating circumstances.
I kindly request that you consider my situation and grant First Time Abatement for all penalties associated with the tax year [Year]. Thank you for your understanding and review.
Sincerely,
[Your Signature]
[Your Typed Name]