Before contacting the IRS Practitioner Priority Service (PPS) line, it’s essential to prepare all relevant information. Gather the taxpayer’s full name, Social Security Number (SSN) or Employer Identification Number (EIN), the IRS Notice or letter reference number, and Power of Attorney (Form 2848) if applicable.
When calling the PPS line at 866-860-4259, authenticate your identity and relationship to the taxpayer using the gathered information. Clearly state your request: “I am calling to request proof of the immediate supervisor’s written approval for the [Tax Type and period] penalty assessment under I.R.C. § 6751(b)(1) for [Taxpayer’s Name], as required by the statute.”
Document the call by recording the date and time, noting the name and identification number of the IRS representative, and summarizing the information provided and any instructions given by the IRS representative. If informed that there is no documentation proving the immediate supervisor’s approval, request a penalty abatement.
Writing a Letter to Respond to the IRS Notice
Use letterhead and include the date, taxpayer’s name, address, SSN/EIN, and IRS Notice reference number in the header. In the opening paragraph, state the purpose of the letter: “This letter is in response to the IRS Notice [Notice Number], dated [Date], regarding the penalty assessment.”
In the body of the letter, explain the issue: “Pursuant to I.R.C. § 6751(b)(1), any penalty under this title must be personally approved in writing by the immediate supervisor of the individual making such determination.” Request specific information: “I request proof of the immediate supervisor’s written approval of the initial determination of the penalty assessment as required by I.R.C. § 6751(b)(1).” Mention the call: “I have previously requested this information via the IRS Practitioner Priority Service line on [date].”
In the closing paragraph, request that the penalty be abated if no proof can be provided. Provide your contact information for further correspondence and include a polite closing: “Thank you for your prompt attention to this matter.” Sign the letter and include your printed name and title.
Writing a Formal Penalty Abatement Request
Use the attorney’s letterhead and include the date, taxpayer’s name, address, SSN/EIN, and IRS Notice reference number in the header. In the opening paragraph, state the purpose of the letter: “This is a formal request for penalty abatement for the penalties assessed under [Notice Number], dated [Date].”
In the body of the letter, provide the legal basis for abatement: “Under I.R.C. § 6751(b)(1), any penalty under this title must be personally approved in writing by the immediate supervisor of the individual making such determination. To date, I have not received the required documentation of such approval.” Request abatement: “In light of the absence of this mandatory approval, I formally request the abatement of the penalty assessed.” Include any additional arguments, such as reasonable cause or good faith efforts by the taxpayer to comply with tax laws, if applicable.
Complete IRS Form 843, “Claim for Refund and Request for Abatement,” including all relevant information about the penalty and the reasons for requesting abatement. Attach any supporting documentation, such as the IRS Notice, previous correspondence, and proof of reasonable cause. Attach the formal penalty abatement request letter to IRS Form 843.
Mail the completed IRS Form 843 and the cover letter to the appropriate IRS address specified in the instructions for Form 843.
Always keep copies of all correspondence and documentation for your records. Ensure that any deadlines specified in IRS Notices are met to avoid additional penalties or enforcement action.