What is a penalty abatement letter?

A penalty abatement letter is a written request to the IRS to waive penalties associated with tax payments, typically due to circumstances like late filing or payment errors. Brad Barrett describes it as a letter you send in response to an IRS notice, acknowledging the additional tax and interest owed but requesting the removal of the penalty. The letter should explain why the error occurred and mention any history of timely tax compliance. It should be respectful, clear, and include any necessary documentation showing that the tax and interest owed are being paid. This type of request, described as an "abatement", often has a high rate of success if done correctly 1.