- What it means
- A yearly reminder of a balance that includes a civil penalty, with interest accrued.
- Respond within
- The date on the notice
- What to send
- Payment or a plan if none exists.
- When to get help
- If the penalty was never contested, check whether first-time abatement or reasonable cause still applies.
What the letter says
The annual statement for an account where part of the balance is a penalty rather than tax.
What to do
If the penalty is abatable and you never asked, ask now; removing it reduces the balance and the interest on it. Otherwise pay or set up a plan.
What to gather
- The notice
- The original penalty notice
- Filing history for the prior three years
Write back
The First-time penalty abatement request letter tool builds the response in the order the IRS reads it. Fill it in, review it, print it, and send it with copies of the documents above and the notice stub on top.
Before you send anything
This is general information, not tax advice. Situations differ. Check with your tax advisor before you send anything. Nothing on this page creates a client relationship.