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Removal of Penalty, Reasonable Cause, if you're lucky. 

Removal of Penalty__Reasonable Cause. The law lets us remove or reduce the penalties we explain in this notice if you have an acceptable reason. If you believe you have an acceptable reason you may send us a signed statement explaining your reason. We will review it and let you know if we accept your explanation as reasonable cause to remove or reduce your penalty.

We will also remove your penalty if:

__you wrote to IRS and asked for advice on a specific issue

__you gave IRS complete and accurate information,

__IRS wrote back to you and gave you a specific course of action to take or explained what actions not to take,

__you followed our written advice in the manner we outlined, and __you were penalized for the written advice we gave you.

To have the penalty removed because of erroneous written advice from IRS, you should:

__complete Form 843, Claim for Refund and Request for Abatement,

__request that IRS remove the penalty, and

__send Form 843 to the IRS Service Center where you filed your return for the year you relied on erroneous advice from the IRS.

The three documents you must attach to your Form 843 are:

__a copy of your original request for advice from IRS

__a copy of the erroneous written advice from IRS, and

__a notice (if any) showing the penalty we charged that you now wish us to remove.

NOTE: The reasonable cause provisions explained above apply in a limited way to estimated tax penalties charged individuals and fiduciaries. However, they do not apply to estimated tax penalties charged corporations. Nor do they apply to certain cases of fraud and negligence for returns due before 1990.