Abatement Request

What is an abatement request?

An abatement request is a formal appeal to the IRS or state tax authority asking them to reduce or eliminate a penalty. You may request abatement based on reasonable cause, first-time penalty relief, or administrative waiver. The request must be in writing, explain why the penalty should be removed, and provide supporting documentation. Abatement reduces what you owe but requires proactive effort.

Grounds for abatement

First-time penalty abatement applies if you have a clean compliance history for the prior three years. Reasonable cause requires demonstrating that circumstances beyond your control prevented compliance: serious illness, death in the family, fire or natural disaster, or reliance on erroneous professional advice. Statutory exceptions exist for certain situations like combat zone service. Know which ground applies to your situation.

Submitting an effective request

Write a clear letter identifying the tax period, penalty type, and amount. State the specific relief provision you are requesting. Explain the facts supporting your case. Attach documentation proving your circumstances. For first-time relief, state that you have filed and paid on time for the prior three years. For reasonable cause, document the specific events that prevented compliance and your efforts to comply as soon as possible.