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Form 0853c - Penalty Waiver Or Abatement Disallowed/appeals Procedure Explained - Sample Page 5

obligations. However, a review of your account history shows that we

have charged similar penalties in the past.

_____________________________________________________________________

We are sorry, but we are unable to waive the penalty for underpayment

of estimated tax based on the explanation you gave. We can only waive

the penalty if you failed to pay because:

a casualty, disaster, or other unusual circumstance occurred, and

the imposition of the penalty would be against equity and good

conscience,

you retired during the tax year after reaching age 62

you became disabled during a tax year that estimated payments were

due or during the previous tax year,

AND

the underpayment was due to reasonable cause and not to willful

neglect.

You asked us to remove the interest as well as the penalty(s) on your

account. However, the law does not permit us to remove interest for

reasonable cause. We charge interest on any unpaid tax, regardless of

whether you had reasonable cause.

YOUR CURRENT BALANCE

Your total balance due ________. This amount includes penalty

and interest figured __________. Please note that we will

continue to charge interest until the amount you owe is paid in full.

We've provided a general explanation of the possible penalties

and/or interest included in the current balance due on your

account. If you would like a specific explanation of how the

amounts were computed on your account, please contact us at the

toll-free number shown in this letter and we will send you a

detailed computation.

** Filing and/or Paying Late -- IRC Section 6651 **

We charge a 5% penalty for filing late, and a 1/2% penalty for

paying late, when a return is filed late and the tax is not paid

by the date it was due. When both penalties apply for the same

month, the penalty for filing late is reduced by the amount of

the penalty for paying late for that month.

The penalty for filing late is based on the tax ultimately due,

which was not paid by the original return due date without regard

to extensions.

The penalty for paying late is based on the net unpaid tax at

the beginning of each penalty month following the payment due

date for that tax.

The penalties are charged for each month or part of a month the

return or payment is late; however, neither penalty can be more

Form 0853c - Penalty Waiver Or Abatement Disallowed/appeals Procedure Explained - Sample Page 5