The purpose of this letter is to respond to an IRS notice that is assessing you a penalty. If you feel that the penalty is unjustified or too high, use this letter to explain to the IRS why you feel that way. Be honest with the facts that you give, because the IRS may question these facts later on. Attach to your letter any documentation that supports your response. This may include copies of deposit slips, canceled checks, etc. DO NOT send the original documents to the IRS because the IRS will not return them to you. Keep in mind that the IRS will not likely reduce any of the tax or interest that is being assessed. However, if you provide a good reason, the IRS may possibly reduce the penalty. This letter is only intended to address the penalty. |