IRS Letter 854C – Penalty Waiver or Abatement Disallowed

The IRS sent Letter 854C to inform you that your request for penalty waiver or abatement has been fully or partially denied.

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Type of Notice: Account information or change

Most common tax problem area: IRS penalties

Other tax problem areas: IRS bill for unpaid taxes

Why you received IRS Letter 854C

  1. You requested a penalty waiver or abatement.
  2. The IRS denied your request.
  3. The IRS sent Letter 854C to inform you of the denial and to advise you of your right to appeal this decision.

Your options to address IRS Letter 854C

  1. Dispute the penalties
  2. Make arrangements to pay

Notice deadline: 60 days

If you miss the deadline: You lose your right to appeal the denial without paying the penalties first.

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