Letter for Reduction of Penalty

[Your Company’s Letterhead]

[Date]

[Recipient’s Name]

[Recipient’s Position]

[Recipient’s Office/Department]

Bureau of Internal Revenue

[Address]

[City, Zip Code]

Dear [Recipient’s Name],

Subject: Request for Reduction of Penalty

I hope this letter finds you well. I am writing to respectfully request a reduction in the penalty imposed on [Your Company Name], with Tax Identification Number (TIN) [Your TIN], for [specific violation or reason for penalty, e.g., late filing of tax returns, late payment of taxes].

We acknowledge our responsibility and understand the importance of compliance with the Bureau of Internal Revenue (BIR) regulations. However, we would like to explain the circumstances that led to this situation:

Reason for Delay: Provide a brief but detailed explanation of why the penalty occurred. For example:

"Due to an unexpected technical issue with our accounting system, we experienced significant delays in processing our financial documents."

"A key member of our accounting team encountered a medical emergency, which caused a temporary disruption in our tax filing schedule."

Corrective Actions Taken: Outline the steps you have taken to address the issue and ensure it does not happen again. For example:

"We have upgraded our accounting software to a more reliable version and have provided additional training for our staff to prevent similar issues in the future."

 

"We have implemented a more robust internal review process and added additional checks to our tax filing procedures."

Financial Impact: Briefly describe the financial impact the penalty has on your business, emphasizing any challenges or constraints you are currently facing. For example:

"The penalty amount significantly affects our cash flow, which is already strained due to the ongoing economic challenges."

Given these circumstances, we kindly request your consideration for a reduction of the penalty imposed. We are committed to fulfilling our tax obligations promptly and accurately moving forward. We believe that a reduction in the penalty would greatly assist us in stabilizing our operations and maintaining compliance with BIR regulations.

We are willing to provide any additional documentation or information that may be required to support our request. We sincerely hope for your understanding and favorable consideration of our appeal.

Thank you for your attention to this matter. We look forward to your positive response.

Yours sincerely,

[Your Full Name]

[Your Position]

[Your Contact Information]

[Your Email Address]

This template can be customized with specific details pertinent to your situation. Ensure all relevant information is provided to make a compelling case for the reduction of the penalty.