The IRS will never waive the interest that is due on a past due tax debt, but they will sometimes waive the penalties or a portion of the penalties, if you can show reasonable cause as to why the taxes were not paid on time. You would need to write a letter to the IRS Service Center where you file your returns to the attention of the Penalty Abatement Coordinator. Here is a sample of what the letter should include: Sample Request Letter To: XXXXX XXXXX Coordinator IRS Service Center P.O. Box 123 Cincinnati, OH. 98765
(Make sure you use the actual address for the service center where you file your return)Re: Request for Penalty Abatement From: Jane Doe XXXXXMain Town, WY. 98766 SSN:NNN-NN-NNNNJuly 4, 2010 To Whom It May Concern: I am requesting an abatement of penalties totaling $2,345.20 as asserted in the IRS Notice dated 6/2/XX, of which I have enclosed. The reason I paid late, filed late, did not report income (choose your reason) was that __________(fill in your reason, such as:) My husband passed away I was hospitalized My tax records were lost in the hurricane Whatever your good reason is.... Enclosed is a (describe your supporting documentation, such as): Death certificate confirming my husband's death Doctor's explanation for my hospitalization Picture of house torn apart from hurricane I have also enclosed payment that covers the amount of the underlying taxes I owe. (It is a good idea to send at least something as a good faith deposit). Please abate these penalties for "reasonable cause." If you have any further questions, please feel free to contact me at(NNN) NNN-NNNNfrom 8a to 5 pm. Thank you in advance for your time and consideration. Sincerely, Manual signature Jane Doe Enclosed: IRS Tax Notice, death certificate, doctor's letter, photograph. If this was helpful please press the Accept button. It is the only way we receive any credit for helping with these questions.