If you have penalties on your hands due to the late payment, you can get a penalty waiver. IRS allows the taxpayer to request the penalty waiver if they have genuine reasons. To get a reduction in penalty, you should claim the affordable cause with the penalty abatement letter.
You can use the sample letter of request for reduction of penalty. It will help you to write the waiver letter easily. The main reason for requesting the penalty waiver is to help the taxpayer who got a penalty. Many people don’t know there is a simple way to save them from lots of money they will spend on a penalty by writing the request letter for reduction of penalty. When you are writing the penalty abatement request letter, you should submit essential documents. Here are some important documents to attach with the letter:
- Submit a copy of the tax bill
- The record will prove that you were injured at the time of paying tax
- Insurance claim and photographic evidence for disasters. Also explain how the disaster happened.
Tips To Prove Causes For Late Tax Payment
Here are some facts in the penalty abatement letter.
- You should provide the case background and ensure you are clear about the key point in the story. The key plan is the important developments that lead you to be unsuccessful to pay tax.
- In the letter, you can write when it happened that will aid the IRS to understand how long beyond between developments. Also, you should explain how the payment date suits events.
- You will show the proof of an attempt to pay the tax. It explains to the IRS that you are not declaring cause to get off the tax obligations.
The best way to file for a reduction of penalty is by sending the written letter to the IRS demand for penalty abatement.