How to Build a Comprehensive Penalty Abatement Letter

Important 2013 Tax Tip From Sage

For clients with IRS penalties that are abatable for reasonable cause, drafting a comprehensive penalty abatement letter can help increase a client’s chances of receiving abatement. A well-drafted penalty abatement letter includes seven sections:
•    Taxpayer and penalty information
•    Clear request for abatement and appeal
•    Facts and circumstances explanation
•    Applicable law and authority
•    Discussion of facts and law/authority
•    Next action request
•    Signature, attestation, and attachments
This fact sheet breaks down each component and outlines the information to include in each section:

Learn how to build a penalty abatement letter in seven sections.

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