Letter of request for reduction of fines from the IRS Indicate the type of penalty you want eliminated, include an explanation of the facts and the facts and circumstances specific to your situation, and explain why these events were beyond your control. Attach documents that prove your case. ZERO SPAM, UNSUBSCRIBE AT ANY TIME. Don't worry, our consultations are 100% confidential and 100% free of charge.
The reduction for reasonable cause may take a significant amount of time, depending on whether an appeal is necessary. Initial penalty reduction requests usually take 2 to 3 months to reach an initial determination. If an appeal is required, you can add 6 to 12 months to the process. For help creating a strategy to address your tax problem, visit the Jackson Hewitt Tax Resolution Center to see the various ways we can help you.
The IRS generally denies initial requests, but some taxpayers may simply not request a reduction when they can. This can be used to punish for lack of presentation or payment, as long as you have a good reputation and have a clean history of penalties. It's no surprise that those who write a penalty reduction letter for the first time worry about what to include. End the letter by asking the IRS to reduce the fine based on the facts and the law you submitted, supporting your relief from the fine.
We can review any questions you have about your penalty reduction letter or provide you with information on any other tax-related items you may have. The IRS will not approve a request if the reasonable cause of the non-compliance involves trusting a tax professional or in financial difficulty. Conversely, taxpayers can request an exemption from the penalty when filing their tax return (people use Form 22). If you request a reduction in a certain fine for more than one year, you'll need to have reasonable cause.
Also, be sure to provide an explanation of any previous penalty reduction requests in this part of the letter. If after reading the previous article you think you qualify, request a reduction in the fine for the first time. Eventually, you can request a due process hearing if you have an outstanding balance, and the IRS can take this opportunity to consider requesting a reduction in the fine at this hearing. As soon as the IRS proposes or imposes a fine, you should take steps to write a persuasive letter reducing the penalty, as there may be legal deadlines for requesting relief.
It's a good idea to be sure to include a statement requesting an appeal and your contact information, in case the IRS doesn't grant you help. No taxpayer wants to pay tax penalties, but relief may be on the way with the help of a fine reduction request letter. The letter allows you to make strong arguments with the IRS and describe all the details, including the type of fine you want to see reduced and an explanation of the facts.
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