The LTR 2801C confirms the IRS granted penalty relief on your account. This is the result of a penalty abatement request you or your representative submitted. The letter identifies which penalty was removed, the amount of the relief, and the resulting balance.
Types of Relief
The relief may be First-Time Abatement (administrative waiver for taxpayers with clean compliance history), reasonable cause abatement (circumstances beyond your control prevented compliance), or statutory exception (specific legal provisions that excuse the penalty).
Verify Everything
Confirm the correct penalty type was removed (failure-to-file vs. failure-to-pay vs. accuracy-related). Confirm the amount matches your records. Confirm the interest associated with the penalty was also adjusted. If any of these are wrong or incomplete, contact the IRS.
If you requested abatement of multiple penalties and the LTR 2801C only addresses one, check whether additional correspondence is forthcoming or follow up on the remaining penalties.
Impact on Your Balance
Penalty removal reduces your balance. If the relief brings your balance to zero, confirm that any lien has been or will be released. If a remaining balance exists, determine whether payment or a payment plan is needed.
If you received penalty relief but expected more, call us at (813) 229-7100.